The Fed left rates alone last week. It also left in language hinting the next move would probably be a cut.
One of the people who voted against that language is now telling reporters she thinks it's "misleading." That voice is Cleveland Fed President Beth Hammack, and she's not whispering.
Hammack laid out her case in two places: a formal statement on May 1 explaining her dissent, and a public radio interview last week where she went further off-script.
In the statement, she said the FOMC's "additional adjustments" language was meant to signal a pause rather than an end to the easing cycle - and she sees that bias as "no longer appropriate given the outlook." On WOSU public radio, she said the signal was "a little bit misleading, just given my view of where the economy is."
Her case is straight inflation hawk. She sees inflation pressures as broad-based, says rising oil prices add another push higher, and notes that U.S. growth has held up while unemployment is sitting near her estimate of full employment.
In her own words, "upside risks to inflation and downside risks to growth and employment" are both elevated - which is the kind of two-sided risk that makes leaning toward cuts feel premature. In English: there's no slowdown that would justify cuts, so why does the official statement still hint at one?
This wasn't a one-off complaint, since the April meeting saw four officials dissent - the most at any single FOMC meeting since October 1992.
Hammack joined Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan in voting against the easing bias, while Fed Governor Stephen Miran went the other direction and dissented in favor of an actual rate cut.
That's a committee that disagrees on whether the next move is a cut, a hold, or eventually a hike. For investors trying to read forward guidance, the message is muddier than the official statement makes it sound.
A four-way split also gives Powell less room to telegraph a clean path. Each public appearance from a regional president becomes its own forward-guidance event.
The bond market still prices in roughly two cuts by year-end, but that number is going to move every time another regional Fed president steps to a microphone.
Hammack is signaling she'll keep pushing, and three votes against an easing bias is the loudest dissent the Fed has had since Powell took over.
The next FOMC meeting is June 16-17, and the case for a cut needs help from incoming data. Right now the data is not cooperating.