Earlier this month, Fed Governor Michelle Bowman expressed concern about high inflation, stating that she expects the Fed may need to “raise rates further and hold them at a restrictive level for some time.”

However, other Fed members have signaled that they may be ready to end hikes to the Fed Funds Rate, citing the risks of hiking too much. Fed Governor Christopher Waller said, “The financial markets are tightening up and they are going to do some of the work for us.” He added, “We’re finally getting very good inflation data. If this continues, we’re pretty much back to our target.”

Atlanta Fed President, Raphael Bostic, further stated, “I actually don’t think we need to increase rates anymore,” as he noted that rates were “clearly” restrictive and slowing the economy. San Francisco Fed President Mary Daly has also noted the need for further hikes “is diminished” if financial conditions remain tight. Dallas Fed President Lorie Logan and Philadelphia Fed President Patrick Harker have made similar comments as well.

What’s the bottom line? We are clearly seeing some dissent among Fed members, which will be crucial to follow ahead of their next rate decision on November 1.