Fed’s Barkin says rate hike an ‘open question’; Hammack backs increase on inflation concerns

Federal Reserve officials remain divided on the path of US monetary policy. Richmond Fed President Barkin said a rate hike remains an open question as current rates of 3.50 percent to 3.75 percent may already be restrictive enough to bring inflation down, while Cleveland Fed President Hammack pushed for an immediate rate increase to bring inflation, currently above 3 percent, back to the 2 percent target. The hawkish dissent and divided FOMC could strengthen the dollar and weigh on emerging market flows, including Indian equities.