Fed Interest Rate Meeting Begins With a Hike on the Table and Another ‘Family Fight’ Over Policy

Federal Reserve policymakers will begin their two-day meeting to set interest rate policy on Tuesday, and for the first time in years, the outcome of the vote is a true mystery to investors.Mysterious just the way Fed Chairman Kevin Warsh wants it. Warsh, who started the job in May, has criticized the Fed for telegraphing its future moves too loudly, potentially giving policymakers less flexibility to respond to changing circumstances.Adding to the uncertainty are growing divisions on the 12-member rate-setting Federal Open Market Committee. Although last month's vote to hold rates steady in their current range of 3.50% to 3.75% was unanimous, minutes from the meeting show stark divisions over whether rates should go higher or lower later this year.After last month's vote, Warsh told reporters that policymakers had a "good family fight" about interest rate policy, a scene that is expected to replay at this week's meeting, with dissenting votes likely and the final outcome uncertain.Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan are widely seen as the panel's most hawkish members concerning inflation, and they are expected to press their case for an intere...