Fed officials see another hike coming, but no sign as to when, minutes show
Officials said inflation remains elevated and that the next move could wait until December as investors price in a pause next month.
- Most Federal Reserve officials expect another interest rate increase will be needed this year to combat inflation, according to minutes released Wednesday, as officials unanimously agreed inflation remained elevated and had not made progress toward their 2% target.
- Of the 18 Federal Open Market Committee officials who submitted forecasts, 16 said they expected another increase, with participants emphasizing that a higher path for the target range would be prudent on risk-management grounds.
- The Fed increased its key interest rate at the September 15-16 meeting by a quarter-point to about 3.9%, and officials noted that financial conditions, including rising stock prices, appeared to be supportive of economic growth.
- Wall Street investors now forecast the Fed will keep its rate unchanged at its next meeting October 28-29, while Philip Jefferson, vice chair of the Fed's board of governors, said last week policymakers will need more time.
- President Donald Trump criticized the committee for voting to raise rates, calling them "very political," while higher oil prices stemming from the Iran war and lingering tariff effects have lifted costs in recent months.
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MORE HIKES POSSIBLE: Fed Governor Waller Says Additional Rate Increases May Be Needed to Bring Inflation to 2%
Federal Reserve Governor Christopher Waller says additional interest rate hikes may be needed to bring inflation back to the Fed’s 2% target, but the increases do not have to come at consecutive meetings. Waller said policymakers will weigh incoming economic data before deciding when to act. The Fed’s benchmark rate is currently between 3.75% and […]
Emerging economies gain breathing room as Fed pause expectations strengthen
Growing expectations that the US Federal Reserve will leave interest rates unchanged at its October meeting give emerging economies a brief window to reassess refinancing plans and manage external borrowing pressures.
Federal Reserve Board member Christopher Waller said further rate hikes will be needed to curb inflation, but the central bank has some flexibility in timing, so it doesn't necessarily have to tighten in consecutive meetings, Bloomberg reported.
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