Fed rate hold draws rare dissent, mortgage rates hit 11-month high

The Federal Reserve voted 9 to 3 on July 29 to leave its benchmark interest rate unchanged at 3.50% to 3.75%. Three policymakers — Hammack, Kashkari and Logan — broke ranks to push for an immediate quarter-point increase, the first time in years that three voters have dissented together on the hawkish side.

The hold didn't spare borrowers. The average 30-year fixed mortgage rate climbed to 6.66% the day after the decision, an 11-month high, according to Freddie Mac's weekly survey. Fed Chair Kevin Warsh told reporters the central bank would not let market expectations dictate its decisions, saying added commentary from the Fed can muddy the information markets already provide.

Warsh has also floated trimming the number of regularly scheduled Fed policy meetings from eight a year to six, according to later reporting — a departure from the cadence set in 1981. He reportedly asked colleagues to submit written views on the idea rather than debate it openly. A Fed spokesperson declined to comment on the proposal.

Read the full story at The Cryptonomist.