Another Rate Hike Expected by Federal Reserve Officials, According to Fed Minutes
Originally published on October 11, 2023, by Bryan Mena for CNN.com
Most Federal Reserve officials said last month that they expect one more rate hike, according to minutes from their September policy meeting released Wednesday. Some officials said that how fast inflation cools in the coming months will determine how long rates remain elevated.
“A majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted,” the minutes said.
The Fed held its key lending rate steady at a 22-year high in September as the central bank aims to assess more economic data to understand how the US economy is responding to previous rate hikes. Inflation’s steady descent over the past year, and the job market’s gradual cooldown, gave officials enough reassurance to pause, the minutes showed.