Fed officials argue for higher rates to curb inflation

Several Federal Reserve officials said Friday that they would have preferred higher interest rates instead of keeping policy unchanged, arguing that inflation remains too elevated and may require firmer action. Cleveland Fed President Beth Hammack said the current stance of policy is not restrictive enough and warned that allowing inflation to stay above the 2% target could make it harder to bring prices down later. Minneapolis Fed President Neel Kashkari said smaller rate increases now could reduce the chance of needing larger moves in the future. The comments followed this week’s Federal Open Market Committee meeting, where most voting members chose to keep the benchmark overnight rate steady. The dissenting officials pointed to persistent inflation pressures, including higher energy costs and supply shocks, as reasons to consider tightening policy.