Fed Divide Sharpens Between Washington and Regional Chiefs
- Governors more patient while many presidents ready to raise
- Philadelphia’s Harker worries about ‘falling behind the curve’
Fed's Harker Is in Camp of Normalizing Sooner Than Later
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Remarks from Federal Reserve officials on Thursday highlighted a growing split between its Washington-based Board of Governors and many of the central bank’s regional bank presidents, who are more eager to get on with raising interest rates.
Chair Janet Yellen has worked hard to preserve consensus among the 17 current members of the policy-setting Federal Open Market Committee, but it’s started to fray. Three regional Fed presidents dissented in favor of a rate hike at last week’s FOMC meeting and comments since then show that other officials shared their desire to tighten for the first time this year.