Fed officials split 9-3 on rates, exposing growing divisions over how aggressively to tackle stubborn inflation. Stocks, gold, and Treasury yields react as investors shift focus to a possible Fed rate hike in September. Cleveland Fed president Beth Hammack, Minneapolis Fed president Neel Kashkari, and Dallas Fed president Lorie Logan all pushed for a quarter point rise instead, arguing that inflation, stuck above target for more than five years, needed a firmer response. The Fed, he said, is working towards a single number, 2% annual inflation, and nothing short of that will do. The Fed, he says, will not hesitate to act if inflation does not keep moving towards its goal, and the next test comes in September.