WASHINGTON (AP) — Two Federal Reserve officials who dissented from the central bank’s decision to cut a key policy rate this week say they did not believe economic conditions justified the move.
Eric Rosengren, president of the Fed’s Boston regional bank, says he saw no “clear and compelling” reason for the rate cut. Esther George, head of the Fed’s Kansas City bank, says she would be willing to support a future rate cut should incoming data weaken.
The Fed on Wednesday approved by an 8-2 vote a quarter-point cut in the Fed’s benchmark interest rate, moving it down to a new range of 2% to 2.25%. It was the first rate cut in more than a decade.
Both officials put out statements explaining their opposition on Friday.