Fed policymakers' inflation concerns increased at July meeting, minutes show
Fed minutes show policymakers debated raising rates due to persistent inflation risks from tariffs and energy costs, with many indicating tightening is needed if price pressures don't subside.
- 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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According to the recent minutes of the U.S. Federal Reserve’s FOMC, a majority of members expressed a hardline stance that further interest rate hikes would be necessary if inflationary pressures persist. Members emphasized the need for preemptive and strong tightening policies to achieve the goal of price stability.
Fed minutes show more support for rate hikes as inflation fears mount
Fed minutes show more support for rate hikes as inflation fears mount Click this link for the original source of this article. Author: New York Post This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the...
Los Angeles Times
Independent EspañolMany U.S. Federal Reserve officials believe that the agency will have to raise its main short-term interest rate in the coming months if inflation does not yield, as the minutes of last month’s Fed meeting showed.
Three members have already voted for an increase of 0.25 p.p. at the last meeting, where the majority chose to maintain the rates at 3.5%-3.75%. Inflation is at 3.4%.
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