Fed minutes: most officials see another hike this year

Most Federal Reserve officials judged that another rate increase before year-end was likely, according to minutes of the September 15–16 meeting released Wednesday.

At that meeting the Fed voted 12–0 to raise its target range by a quarter point, to 3.75%–4.00%, its first increase since July 2023 and the first under Chair Kevin Warsh.

Officials saw the risks to inflation as tilted to the upside. Many said that the longer energy prices stay high, the greater the chance they feed into broader price pressures. Inflation ran at 3.4% in August on both the consumer price index and the Fed’s preferred PCE gauge.

The Fed next meets on October 27–28.