Two FOMC voting members explained why they opposed interest rate cuts: Inflation risks are too high, and greater caution is needed.

Chicago Fed President John Goolsby said his dissenting vote this week was his first since joining the Fed in 2023, putting him on the same side as Kansas City Fed President Schmid. He voted against the tariffs because he wanted to wait for more economic data to determine whether their impact on inflation was temporary. In a statement on Friday, Goolsby said, “Given that inflation has been above our target for four and a half years, and that progress on inflation has stalled for months, coupled with the fact that almost all businesses and consumers we’ve spoken to in our district recently have listed prices as a major concern, I felt it was more prudent to wait for more information.” (Jinshi)