Federal Reserve Governors Cook and Hamak voted against a 25-basis-point rate hike.
Federal Reserve Governors Tim Cook and Sam Hamak voted against the Fed's decision to keep interest rates unchanged, advocating for a 25-basis-point increase in the target range for the federal funds rate. This marks the first time Cook has voted against a rate cut since becoming a Fed governor. The White House is preparing to hold hearings to discuss whether to remove Cook from his post due to allegations of mortgage fraud. President Trump has long sought to remove Cook from the Fed, claiming that the Biden-appointed Fed governors are politically motivated to obstruct rate cuts. AI Interpretation: Internal disagreements within the Federal Reserve regarding interest rate hikes have directly disrupted market expectations of a stable interest rate path. The public advocacy for rate hikes by governors indicates increased policymakers' concerns about a rebound in inflation, directly weakening the policy basis for rate cuts. Rising risks of political interference have increased uncertainty in monetary policy, forcing the market to reassess the Fed's independence and decision-making efficiency. This hawkish stance will significantly push up short-term Treasury yields and exert direct valuation pressure on risk assets.