Stories
Federal Reserve Officials Signal Another Interest Rate Hike Likely Needed This Year
- •Most Federal Reserve officials indicate that another interest rate increase will probably be necessary this year to combat ongoing inflation.
- •Officials unanimously agreed that inflation remains elevated and has shown little progress toward the central bank's 2% target in recent months.
- •The Fed raised its key interest rate by a quarter-point to about 3.9% at its September meeting, marking its first increase in three years.
- •The rate hike drew criticism from President Donald Trump, who had repeatedly called for rate cuts ahead of the upcoming midterm elections.
- •Wall Street investors currently forecast that the Fed will keep rates unchanged at its upcoming October meeting before potentially raising them in December.
Key Questions Answered
Minutes released on Wednesday (October 7) from the central bank's most recent meeting indicate that most Federal Reserve officials expect another interest rate increase will likely be needed this year to combat inflation. The officials unanimously agreed that inflation remains elevated and has not made much progress toward their 2% target in recent months.
The Fed increased its key interest rate at the September 15-16 meeting by a quarter-point to about 3.9%, marking its first increase in three years. This rate hike defied President Donald Trump's repeated calls for the Fed to cut rates.
Wall Street investors currently forecast that the Fed will keep its rate unchanged at its upcoming October 28-29 meeting, according to futures pricing, and raise it when it meets again in December.
