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.
121 Articles
121 Articles
The US Federal Reserve left open the possibility of raising interest rates again if inflation remains high, according to the minutes of its last meeting
Fed Signals Conditional Rate Hike Trigger as AI Repricing Risk Takes Center Stage
The Fed just named a specific market risk it had never flagged this openly, and buried inside the July minutes is a precise trigger that would force officials back into hiking mode.
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…
Despite the rapidly rising national debt in the US, increasing inflation, and record-high capital market interest rates, the US central bank does not yet appear to be planning to raise interest rates. There is division within the Fed regarding this issue, and according to resident economist Han de Jong, arguments can certainly be made for this. 'The Fed's interest rate is considerably higher than that of the ECB.'
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
Coverage Details
Bias Distribution
- 52% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
