Most officials at the US Federal Reserve believe that another increase in the key interest rate may be needed this year to combat inflation. This is stated in the minutes of the central bank's latest meeting, published on Wednesday.
According to the minutes, all meeting participants unanimously agreed: inflation remains elevated and in recent months has shown no noticeable progress toward the target level of 2%.
At the 15–16 September meeting, the Fed raised the rate by a quarter of a percentage point — to approximately 3,9%. This was the first such move in three years.
According to the Fed's preferred gauge, overall price growth in August was 3,4% year-on-year, while core inflation was 3%. On a monthly basis, prices rose by 0,3%, and excluding volatile categories, by 0,2%.
Officials noted that even taking into account the rise in long-term rates, financial conditions, including the stock market's rise, appear supportive of economic growth. In their view, this may require additional rate hikes to cool the economy.
How will this decision affect borrowers and consumers in the coming months?
The minutes reflect the regulator's cautious approach amid persistent price pressures, despite recent steps to tighten policy.
