E tu, Tarullo?
The comments by two officials on the Federal Open Market Committee who rarely speak publicly about monetary policy suggested that Ms. Yellen is facing growing internal opposition to the view she expressed last month that it will probably make sense to start raising rates this year to maintain control of inflation.
“Yellen appears to have a revolt on her hands,” said Tim Duy, a professor of economics at the University of Oregon who follows the central bank closely. “She now faces the prospect of multiple dissents from the dovish wing of the F.O.M.C. if she insists on pushing through with a rate hike this year. Such a split decision would not enhance the institution’s credibility.”