Federal Reserve Officials Agree on Possible Interest Rate Hike Amid Stagnant Inflation
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Many Federal Reserve officials have agreed that raising interest rates might be necessary if inflation does not cool, according to minutes released on Aug. 19 from the most recent meeting.
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CNBCFederal Reserve officials indicated at their last meeting that they would need to raise interest rates soon unless there was more progress on bringing down inflation, minutes released Wednesday showed.
New York Post BusinessConcern about inflation deepened at the Federal Reserve’s meeting last month, with “several” policymakers ready to raise interest rates and “many” saying a hike in borrowing costs would be needed if inflation does not decline to the central bank’s 2% target, the minutes of the session showed on Wednesday.
BloombergFed Minutes Show Many Officials Wanted Rate Hike in July Several Federal Reserve officials favored an interest-rate hike last month and many indicated that policy tightening would be necessary if inflation didn’t decline, a record of the central bank’s most recent policy debate showed. The next Fed decision comes in September. Bloomberg's Michael McKee reports. (Source: Bloomberg)
Washington Times BusinessWASHINGTON — Many Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, minutes of the Fed’s meeting last month showed.
MarketWatchThe Fed Fed minutes reveal growing support for rate hikes When Federal Reserve officials met last month to discuss interest-rate policy, more officials were in favor of raising rates than at the previous meeting in June, according to minutes of the meeting, which were published Wednesday.
Financial TimesFed officials express rising concern over persistently high inflation Minutes from July central bank meeting show ‘many’ policymakers are prepared to increase borrowing costs
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A larger group of “many” participants “assessed that policy tightening would likely be necessary if inflation did not decline,” the minutes said.
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CNBC"Many participants assessed that policy tightening would likely be necessary if inflation did not decline," stated the summary of the meeting, held July 28-29. "Some participants commented that financial conditions might not currently be sufficiently restrictive to facilitate a return of inflation to 2 percent."
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New Fed chair Kevin Warsh also unnerved Wall Street investors last month by providing little guidance at a July 29 news conference on what the Fed’s next steps might be, threatening the Fed’s inflation-fighting credibility. Interest rates, or yields, on longer-term Treasury securities, which had already risen before the meeting, moved higher.
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CNBCFed Chairman Kevin Warsh has shown an inclination to be patient when it comes to rates. Markets took remarks he made in his post-meeting news conference as dovish on inflation, which in turn sent Treasury yields sharply higher.
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The board also reviewed “an intermeeting incident that caused a temporary disruption in transaction settlements.” Officials said the Fed’s approach of keeping bank reserves at “ample” levels helped ensure money markets continued to function smoothly despite the disruption.
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CNBCAlso at the meeting, the board discussed "an intermeeting incident involving a disruption to transaction settlements." The minutes noted that the Fed's policy of maintaining "ample" bank reserves "helped maintain the orderly functioning of money markets in the face of this disruption."
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According to the minutes, the chairman indicated that the Fed could hold six scheduled meetings per year, about every two months. The rationale is that it would allow for data to accumulate between meetings and provide officials additional time to consider policy decisions.
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New York Post BusinessWarsh also asked for “input from the Committee” on whether it would be better for the Fed to hold only six meetings a year rather than the current eight, allowing for a full two months of data to accumulate each time. No decisions were made regarding this issue, the minutes said, and the 2026 schedule of meetings would not be altered.
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Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 CNBC Ultimately, the Federal Open Market Committee voted 9-3 to keep the federal funds rate targeted in a range between 3.5%-3.75%, where it has been all year. The overnight borrowing rate serves as a guidepost for a variety of consumer debt including mortgages, credit cards and auto loans.
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02 MarketWatch The record of the Fed’s meeting, released three weeks after its decision, showed that “several” officials favored raising interest rates. In June, only a “few” had supported tighter policy.
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03 New York Post Business The policymakers who favored a rate increase at the meeting “remarked that price pressures appeared broad-based and judged that the (policy-setting) Committee should adopt a more restrictive policy stance to meet its commitment to achieving its price-stability and maximum employment goals on a sustained basis,” the minutes of the July 28-29 meeting said.
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04 Washington Times Business The minutes of the July 28-29 meeting, released Wednesday, don’t provide specifics on how many of the 19 officials supported higher rates. Only 12 of the 19 policymakers vote on the outcome. Officials voted 9-3 at the meeting to keep their key rate unchanged at about 3.6%.
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05 Epoch Times Business “Most participants anticipated that inflation would step down over the rest of the year as the effects of tariffs and earlier energy price increases wane, but many participants noted the possibility that inflation might be more persistently elevated,” according to the meeting summary.
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