The Federal Reserve has maintained its benchmark interest rates at their current level for a fifth consecutive meeting, with the central bank choosing not to raise rates despite growing economic concerns. This decision has sparked the first double dissent from members of the powerful Board of Governors since 1993, highlighting the growing internal divisions within the institution. Christopher Waller and Michelle Bowman, two of the Fed’s most influential governors, have publicly opposed the current rate policy, signaling a potential shift in the Federal Reserve’s approach to monetary policy.
Waller, who previously testified before the Senate in 2, has become a focal point of the ongoing debate over the Fed’s monetary strategy. His dissent, along with that of Bowman, has intensified scrutiny on the central bank, particularly as the Trump administration has recently launched a barrage of attacks against Federal Reserve Chair Jerome Powell. The political pressure on Powell has increased in recent weeks, with Trump criticizing the Fed’s decisions for failing to adequately stimulate the economy.
The dissenting governors argue that the current rate-setting approach is too rigid and not responsive to the evolving economic conditions. They believe that a more flexible strategy is needed to support economic growth without risking inflation. Their positions have drawn mixed reactions from both within and outside the Fed, with some critics accusing the dissenters of undermining the central bank’s credibility. Meanwhile, others support their call for a more adaptive monetary policy that could potentially ease financial pressure on businesses and households.