Three Federal Reserve Presidents Oppose Rate-Cut Language on May 2, Signaling Possible Hikes

According to Wall Street Journal, three regional Federal Reserve presidents—Lorie Logan, Neel Kashkari, and another—opposed maintaining the phrase "next move more likely to be a rate cut" in this week's policy statement on May 2, signaling that the next rate adjustment could be either a hike or a cut.

Federal Reserve Chair Jerome Powell stated that the committee is shifting from a "rate-cut bias" toward a "neutral stance," adding that if future rate hikes become necessary, the Fed will first move to neutral before signaling tightening. The policy discussion has marked a notable shift, with internal debate now focused on conditions for potential rate increases rather than when to resume cuts.