Fed minutes: Another rate hike likely coming this year to combat persistent inflation

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1. 3h ago

   Fed Minutes Signal More Rate Hikes Coming to Fight Inflation

   Federal Reserve officials expect another interest rate increase will likely be needed later this year to combat persistent inflation. Minutes released from the central bank meeting show hawkish unity and unanimous agreement that price increases remain too high without making sufficient progress toward the 2 percent target. The Fed previously raised its key interest rate at the September 15-16 meeting by a quarter-point to about 3.9 percent, marking its first increase in three years. Despite expectations for additional tightening, officials indicate they will take their time and signal no immediate urgency for an October hike.

   Why it matters

   The central bank last lifted borrowing costs during its mid-September gathering, signaling a shift in monetary policy after a prolonged pause. Persistent high costs for everyday essentials like housing, gas, and groceries continue to strain consumers, elevating economic affordability as a central issue ahead of the upcoming midterm elections in just seven weeks. Federal Reserve officials maintain that further tightening is necessary to force inflation down faster.

   What is confirmed

   • Most Federal Reserve officials expect that another interest rate increase will likely be needed this year to combat inflation.
   • Officials unanimously agreed that inflation was still elevated and had not made much progress toward their 2% target in recent months.
   • The Fed increased its key interest rate at the September 15-16 meeting by a quarter-point to about 3.9%, its first increase in three years.

   Still unconfirmed

   • Fed's Waller sees additional rate hikes to get inflation down faster.

   What to watch next

   • Any signals from Federal Reserve officials regarding the timing of the next potential rate increase
   • Upcoming economic data releases concerning inflation progress toward the 2 percent target
   Sources used for this update (11)

   1. Bloomberg.com — Fed Minutes Show Hawkish Unity Behind September Rate Hike
   2. www.ksat.com — Fed minutes: Another rate hike likely coming this year to combat persistent inflation
   3. WSJ — Fed Minutes Signal Further Rate Increase This Year, but No Urgency for October Hike
   4. Yahoo Finance — Fed’s Waller sees additional rate hikes to get inflation down faster
   5. Axios — The Fed's going to take its time with rate hikes
   6. AP News — Fed minutes: Another rate hike likely coming this year to combat persistent inflation
   7. www.thestar.com — Fed minutes: Another rate hike likely coming this year to combat persistent inflation
   8. WNYT.com — Fed minutes: Another rate hike likely coming this year to combat persistent inflation - WNYT.com NewsChan....
   9. www.toledoblade.com — Fed minutes: Another rate hike likely coming this year to combat persistent inflation | The Blade
   10. www.pullbbang.com — 9월 FOMC 금리인상 만장일치…올해 추가 인상 가능성은?
   11. jamaica-gleaner.com — Fed minutes: Another rate hike likely coming this year to ...
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