Fed Minutes: Most Officials Expect One More Rate Hike Before Year-End

S. On October 8, according to Jinshi Data, the Federal Reserve meeting minutes released today indicate that most participating officials expect to raise the target range for the federal funds rate again by the end of this year to curb inflation that has remained above its target level for over five consecutive years.

Meeting discussions indicated that officials saw a risk that inflation would continue to exhibit stickiness, while the labor market neared full employment and overall economic growth accelerated. Many participants stressed that, from a risk-management perspective, proceeding along a path of higher interest rates was a prudent course of action that would provide insurance against inflation persistently exceeding target due to stronger-than-anticipated demand or supply shocks. Subsequent decisions would remain open, depending on how incoming information influences the economic outlook.