On July 28, the Federal Open Market Committee (FOMC) voted 9-3 to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent; all three of the dissenters—Beth M. Hammack, Neel Kashkari, and Lorie K. Logan—wanted to increase the target range for the federal funds rate by 1/4 percentage point.
In their statement, they assert that “Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East.” This means that as the war drives up energy prices (which has a negative ripple effect throughout the entire economy, affecting food production, etc.), they intend to tighten the money supply; ultimately real production and skilled employment will foot the bill.
