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Three FOMC Members Dissent as Warsh Calls the Meeting a 'Family Fight' Over Tactics and Timing
Summary
Chair Warsh described a 'family fight' after three members dissented from the decision to hold rates; he said there was broad agreement on objectives but differing views on the timing and tactics to restore price stability.
Chair Warsh acknowledged that three committee members dissented from the decision to keep the policy rate unchanged, characterizing the meeting as an intentional "family fight" that surfaced different views on tactics and timing.
"I asked for a good family fight, and I got 1," Warsh said, adding that the purpose of vigorous debate is to refine policy. He said there was large majority support for the decision but that members differed on how and when to make harder calls to achieve the 2% inflation goal.
Reporters asked whether the dissenters advocated a strong conviction to tighten immediately; Warsh said judgments differed and that the meeting focused on the big questions about shocks, tools and the path to price stability. He emphasized that the committee retains the authority and tools needed to deliver on its mandate.
