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Bond sell-off a Fed credibility warning, says Alberto Musalem, who backed quarter-point rate dissent

8/1/2026

Twenty-five basis points, the size of the rate rise backed by dissenting Federal Reserve members, is the figure at the center of a public credibility debate after senior official Alberto Musalem said he supported the minority call.

Musalem characterized a bond sell-off as a warning on what markets think of the central bank's current stance.

Musalem's public alignment with the dissent Musalem, identified as a top central bank official, said he backed the dissenters who pushed for the quarter-point increase.

That places him on record with the losing side of a rate vote.