Fed’s minutes show no appetite for a series of interest-rate hikes

Fed’s minutes show no appetite for a series of interest-rate hikes Fed's minutes show no appetite for a series of interest-rate hikes Fed’s minutes show no appetite for a series of interest-rate hikes Last month’s rate hike was viewed by many officials as needed just in case inflation remains sticky Federal Reserve Chairman Kevin Warsh speaks during a news conference in September. Federal Reserve officials showed no desire to engineer a series of interest-rate hikes at their policy meeting in September, according to minutes of the gathering that were released Wednesday. Fed officials were united in their decision to raise the central bank’s benchmark interest rate to a range of 3.75% to 4%, but many portrayed the move as insurance against sticky inflation.

Only a smaller number said the move was needed to fight inflation. Officials believed inflation was cooling and that the September rate hike would speed up the process, per the minutes. It was the Fed’s first hike since July 2023.

Video 91/1 Skip Ad Continue watching after the adVisit Advertiser websiteGO TO PAGE David Booth on Why You Shouldn't Panic Sell Play video: David Booth on Why You Shouldn't Panic Sell “Participants judged that this would support a timlier return of inflation to the Fed’s 2% goal,” the minutes said. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I agree to the Terms of Use, Privacy Notice and Cookie Notice.

I would like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time. In their speeches since the meeting, Fed officials have portrayed the hike as a cautious one.

Most Fed policymakers assessed that another quarter-point hike would likely be appropriate before the end of the year, but stressed the decision was not final. According to the Fed’s economic forecast, the majority of Fed officials think another hike would be the last one needed to cool inflation, and that the Fed could then hold rates steady until slowly lowering rates starting in 2028. Markets are pricing in more tightening than the Fed has forecast.

Traders in derivative markets now see three more quarter-point hikes by next June, which would bring interest rates up to a range of 4.5% to 4.75%. Markets now think the Fed will skip a move at its October meeting and then hike in December.Expectations for an October move pulled back after New York Fed President John Williams publicly indicated there was no need for urgency. The September jobs report also came in softer than expected.