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Fed officials see another hike coming, but no sign as to when, minutes show
CNBC • • general
Key Points:
- Federal Reserve officials indicated in September meeting minutes that they expect to raise interest rates again before the end of 2024 to combat inflation that has exceeded the 2% target for over five years.
- The timing of the next rate hike remains uncertain, with the Fed's next decisions scheduled for October 28 and December 9, and officials emphasizing that future moves will depend on incoming economic data and risk assessments.
- Despite a unanimous quarter-point rate increase in September, recent inflation data showing a slowdown and comments from some Fed officials suggest that another hike in October is unlikely.
- Inflation remains above target, with the Fed's preferred personal consumption expenditures price index at 3% core inflation in August, while Treasury yields have surged to levels not seen since 2002, partly due to expectations of higher rates and economic growth.
- The Treasury's increased buyback program of long-dated debt, announced in August, has had minimal effect on rising yields, which also reflect market uncertainty and robust economic factors including advances in artificial intelligence.
