Even inflation hawks are voting to hold off another rate hike


The Federal Reserve announced on Wednesday that it will hold interest rates steady at 0.25 to 0.5 percent. It made the same choice back in January, after raising rates off the 0 to 0.25 percent floor in December.
This was how the 10 voting members on the Fed were widely expected to rule, but the vote breakdowns are interesting. Both the December and January decisions were unanimous. Today's vote included one dissenter, who wanted to hike again to the 0.5 to 0.75 percent range. What's striking is that even Stanley Fischer, who is arguably the ring-leader of the Fed's inflation hawks, was one of those voting to hold fire.
The lone dissent by Esther George could be seen as a sign that the January agreement to hold off is cracking. But a gradual rise in interest rates this year is also largely seen as a fait accompli, and their next chance to hike interest rates another notch will come in June. And there aren't that many Fed meetings each year. So it seems equally possible that hiking rates in December — on the assumption that inflation and wages would continue increasing as the economy gains strength — is something even the hawks are having second thoughts over.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.
-
5 low ratings cartoons about the Late Show cancellation
Cartoons Artists take on early warning signs, the Gen Z stare, and more
-
Connie Francis: Superstar of the early 1960s pop scene
In the Spotlight The 'Pretty Little Baby' and 'Stupid Cupid' singer has died aged 87
-
Crossword: July 26, 2025
The Week's daily crossword puzzle
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices