Federal Open Market Committee policy statement said authorities will review the magnitude and timing of “additional adjustments” to interest rates. “While that phrase is not a commitment to make further cuts to the policy rate, it is widely interpreted by Fed watchers to indicate the Committee’s expectation that the next adjustment to the federal funds rate would be a cut,”

Kashkari said the phrase regarding potential rate adjustments is forward guidance on interest rates that no longer makes sense after the Iran war.

Instead, “the FOMC should offer a policy outlook that signals that the next rate change could be either a cut or a hike, depending on how the economy evolves.”

Logan highlighted that the guidance evolved from the Fed’s three rate decreases last fall, implying that a rate cut was expected next. In over 30 years, the Fed hasn’t had four policy dissenters.