July FOMC: Three Dissents, Sticky Inflation, September Decision Ahead

The Federal Reserve's July 29 policy statement held one number that most readers skipped past: three. Not the 3.4% inflation rate, not the 3.50%-3.75% target range that has sat unchanged through five consecutive meetings. The number that matters is three regional Fed presidents who voted to hike rates right then, in what amounts to the most fractured FOMC vote since the committee's modern deliberative era. Hammack, Kashkari, and Logan were overruled. But they were heard. Fed policy framework

Key Takeaways The July 29 FOMC held rates at 3.50%-3.75% on a 9-3 vote, with three regional presidents dissenting in favor of an immediate 25 basis point hike, the deepest internal fracture in recent Fed…