Dissent Within the Fed at Two Year High

Opposition is brewing within America’s central bank.

The Fed didn’t raise key interest rates on Wednesday. But the vote wasn’t unanimous. Three Fed presidents voted the opposite way — a rare amount of opposition, and the most in nearly two years.

Typically, almost all its officials vote in line with Fed Chair Janet Yellen. Now, dissent is rising.

“This seems to have been one of the most divisive [Fed] meetings in recent memory,” says Paul Ashworth, chief U.S. economist at Capital Economics, a research firm. The last time there were three dissenters was in December 2014.

The U.S. central bank has come under a lot of criticism lately by Wall Street for the fact that many of its officials give speeches that send wildly conflicting messages. Some leaders argue for raising rates, and others make the case against a rate hike. It confuses investors.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza