Fed policymakers' inflation concerns increased at July meeting, minutes show
The minutes showed several policymakers favored an immediate hike as many said tighter policy may be needed if inflation stays above the 2% target.
- On Wednesday, minutes from the July 28-29 meeting showed Federal Open Market Committee officials voted 9-3 to hold the federal funds rate at 3.5%-3.75%, citing persistent inflation concerns well above the 2 percent target.
- Many participants assessed that policy tightening would be necessary if inflation does not decline, with policymakers remarking that "price pressures appeared broad-based" and judging a more restrictive stance essential to meet stability goals.
- Three regional presidents—Beth Hammack of Cleveland, Lorie Logan of Dallas, and Neel Kashkari of Minneapolis—dissented, arguing a rate increase would "forestall the need for a steeper and potentially more costly sequence of tightening moves."
- Federal Reserve Board Chairman Kevin Warsh asked for "input from the Committee" on reducing annual meetings from eight to six, while maintaining his preference for providing less forward guidance to preserve policy flexibility.
- Investors are pricing in rate hikes to begin as soon as the October 27-28 meeting, though renewed hostilities in the Middle East have constrained oil shipments, complicating the central bank's inflation-fighting path.
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Treasury rushes into bond market as Fed minutes show many governors want to hike rates, not cut
Many Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, minutes of the Fed’s meeting last month showed. The minutes of the July 28-29 meeting, released Wednesday, don’t provide specifics on how many of the 19 officials supported higher rates. Only 12 of the 19 policymakers vote on the outcome. Officials voted 9-3 at the meeting to keep their key r…
The Hindu Business Line
LatestlyUS Fed Minutes signal rate hike debate as inflation risks persist; 3 officials favoured 25-bps increase
At its July 28-29 meeting, the FOMC decided to keep the federal funds target range unchanged at 3.5-3.75 per cent, in a 9-3 vote
Federal Reserve officials hint rate increase may be necessary
Multiple Federal Reserve officials indicated the central bank may need to raise interest rates later this year, according to newly released minutes of the Fed’s July meeting. While most participants at the joint meeting of the Federal Open Market Committee (FOMC) and the Fed’s Board of Governors “anticipated that inflation would step down over the…
Fed officials, at the July meeting, pointed to the possibility of raising interest rates unless inflationary pressure subsides. The post Fed to raise interest rates if inflation persists – What the minutes "say" appeared first on in.gr.
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