The Battle Inside the Fed Over Interest Rates

The transcript discusses the Federal Reserve's internal disagreements over interest rate policies. Some officials advocate for tightening monetary policy due to a strong labor market and potential inflation risks. However, the majority remain cautious, citing external risks like Brexit and European banking issues. Market reactions are mixed, with some predicting no rate hike this year.

What implications could a prolonged low-interest rate environment have on financial stability according to the text?

What does the term 'doves versus hawks' refer to in the context of the Federal Reserve's decision-making?