Fed Officials Kashkari, Hammack Dissent Over Rate Cut Guidance in 8-4 Vote

Federal Reserve officials who voted this week against the post-meeting statement said they didn't think it was appropriate to signal that the next interest rate move would be lower. Regional presidents Neel Kashkari of Minneapolis and Beth Hammack of Cleveland released statements explaining their votes, offering similar rationale regarding the verbiage in the statement — but not over the decision to keep a hold on rates form their current position. Kashkari said the statement contained "a form of forward guidance about the likely direction for monetary policy. Given recent economic and geopolitical developments and the higher level of uncertainty about the outlook, I do not believe such forward guidance is appropriate at this time." Similarly, Hammack said she didn't agree with the decision to indicate an "easing bias around the future path for monetary policy." "I see this clear easing bias as no longer appropriate given the outlook," she said. The statement passed by an 8-4 vote, the largest number of dissents since 1992.