FOMC Preview Delivering on price stability

Research evidence excerpt

FOMC Preview Delivering on price stability

Economics ● United States

21 July 2026

Leading up to the blackout period for external communications ahead of the July FOMC

meeting, policymakers expressed different views on whether rate hikes are urgently needed. On

16 July, Fed Vice Chair Philip Jefferson said that the FOMC’s current policy stance “should

continue to support the labor market while allowing inflation to resume its decline toward our

2 percent target as the effects of past tariffs and energy prices pass through completely.” The

previous day, Fed Governor Lisa Cook had noted that risks were skewed toward higher inflation

but that it was “prudent to give a bit more time to observe how inflation unfolds from here.”

On the more hawkish side of the FOMC debate, Dallas Fed President Lorie Logan also spoke

on 16 July. President Logan made a case for action, saying “I currently believe modestly higher

interest rates would better balance the outlook for the FOMC’s maximum employment and price

stability goals,” while allowing that her policy views could change as the economic outlook

evolves. If the FOMC votes for unchanged policy rates in July as we expect, President Logan

may choose to dissent in favor of a 25bp rate hike. Cleveland Fed President Beth Hammack

and Minneapolis Fed President Neel Kashkari are two other potential hawkish dissenters.

Presidents Logan, Hammack, and Kashkari each dissented against “easing bias” language in

the FOMC statement back in April, though this does not necessarily mean these policymakers

will now vote for an actual rate hike.

Another complication is that FOMC policymakers are assessing at least three factors that are

contributing to elevated inflation: strong AI-related demand, the conflict in the Middle East, and