Three Fed hawks warn inflation could persist, urge rate hikes

At the July FOMC, Beth Hammack, Neel Kashkari, and Lori Logan opposed holding rates steady.

They argued inflation could stay above the 2% target for longer and said the Fed should raise rates now, even modestly.

Their view is that energy prices and demand pressures are both keeping inflation sticky, so earlier tightening may avoid bigger hikes later.

The Fed left rates at 3.5% to 3.75%, but markets are pricing in a high chance of a September hike.