Three Federal Reserve officials who voted against holding interest rates steady this week say the central bank should raise rates to bring inflation back under control.
Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented when the Federal Open Market Committee voted 9-3 to keep the federal funds rate in a target range of 3.5% to 3.75%. All three preferred a quarter-point
increase.
Hammack said she isn't certain inflation will return to the Fed's 2% target without action. "Supply-side factors, including energy prices, have boosted inflation this year, but I see inflationary pressures coming from the demand side of the economy, as well," she said. Business contacts around the Cleveland district, she added, have told her that price pressures are widening rather than easing.
Kashkari argued that smaller moves taken sooner could head off the need for more aggressive action later. Kashkari also contended that the Fed should not stand aside simply because inflation stems from supply-side forces, warning that a string of such shocks could cause elevated prices to become a permanent feature of the economy. | 
