Fed Officials Deeply Split on Future Rate Moves

Minutes show disagreement over whether to cut rates further or hold steady

Published on Feb. 27, 2026

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Federal Reserve officials were deeply divided at their January policy meeting over the future path of interest rates, with some arguing for more rate cuts later this year if inflation continues to cool, while others wanted to hold rates steady "for some time" and warned that further easing might have to wait until a clear disinflation trend is restored.

Why it matters

The split among Fed officials reflects the uncertainty around the trajectory of the economy and inflation, which will be a key factor in determining the central bank's next moves on interest rates. The disagreement also comes as the White House's nominee for the next Fed chair, Kevin Warsh, awaits confirmation, which could shift the balance of the rate-setting committee.

The details

The January meeting was the first with a new slate of regional Fed voters, including Dallas' Lorie Logan and Cleveland's Beth Hammack, who have both signaled support for holding rates steady. Two governors, Christopher Waller and Stephen Miran, dissented in favor of another rate cut. The "vast majority" of the 19-member rate-setting committee agreed there were signs the job market had stabilized, reducing the need for rate cuts to boost hiring. They mostly expected inflation to come down this year, "though the pace and timing of this decline remained uncertain."

  • The January 27-28 policy meeting was the first with a new slate of regional Fed voters.
  • The Fed's preferred measure of inflation is expected to come in at 3% when figures are released on Friday.

The players

Lorie Logan

Dallas Federal Reserve official who has signaled support for holding rates steady.

Beth Hammack

Cleveland Federal Reserve official who has signaled support for holding rates steady.

Christopher Waller

Federal Reserve governor who dissented in favor of another rate cut.

Stephen Miran

Federal Reserve governor who dissented in favor of another rate cut.

Kevin Warsh

The White House's nominee to be the next Federal Reserve chair, seen as more pro-cut.

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What they’re saying

“That's not where people's expectations are right now.”

— Jerome Powell, Federal Reserve Chair (Wall Street Journal)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The deep divisions among Fed officials over the future path of interest rates reflect the ongoing uncertainty around the trajectory of the economy and inflation, which will be a key factor in determining the central bank's next moves. The disagreement also comes at a pivotal time as the White House's nominee for the next Fed chair awaits confirmation, which could shift the balance of the rate-setting committee.