For the first time since 1992, a Fed governor and president dissented together, as Kevin Warsh says the ‘monetary medicine’ is starting to work
Source: Fortune ·
The Fed held rates at 3.75% to 4% six days before the midterms, as Cook—whom Trump has tried to fire—and Hammack pushed for a hike.
From the source
The Federal Reserve held interest rates steady on Wednesday, six days before the midterm elections. Only two officials wanted to raise them, and one was Lisa Cook, the Fed governor President Donald Trump has tried to fire. The Federal Open Market Committee voted 10-2 to keep its benchmark rate at 3.75% to 4%. Cook was joined by Cleveland Fed President Beth Hammack, both “who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting,” the Fed said in its statement. The vote came with two firsts: it was Cook’s first dissent since she joined the board in 2022. And it was also the first time a Fed governor and a regional bank president dissented on the same side since October 1992. Then, Governor Lawrence Lindsey and Cleveland Fed President Jerry Jordan both wanted the Fed to cut rates right away, while Governor John LaWare and St. Louis Fed President Thomas Melzer dissented together on the other side. Fed records show how rare the pairing has…
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