Key Points
Federal Reserve officials were divided over the need for more interest rate hikes at the U.S. central bank's July 25-26 meeting, with "some participants" citing the risks to the economy of pushing rates too far even as "most" policymakers continued to prioritize the battle against inflation, according to minutes of the session that were released on Wednesday...
"Participants remained resolute in their commitment to bring inflation down to the ... 2% objective," the minutes said of a meeting in which policymakers on the Federal Open Market Committee unanimously agreed to raise the benchmark overnight interest rate to the 5.25%-5.50% range..
Yet cautionary voices about the effects of continued monetary tightening appeared to play a more prominent role in the debate at last month's policy meeting, an indication that the spread of opinion at the Fed has widened as policymakers weigh evidence that inflation is falling and judge the potential damage to jobs and economic growth if rates are raised higher than necessary...
In general, the minutes said, Fed policymakers agreed that the level of uncertainty remained high, and that future interest rate decisions would depend on the "totality" of data arriving in "coming months" to "help clarify the extent to which the disinflation process was continuing" - a possible indication of a more patient approach to any further rises in borrowing costs...
Investors in contracts tied to the federal funds rate are betting heavily that the Fed won't raise its policy rate again during the current tightening cycle, and as of Wednesday morning had put a 90% chance on the prospect that the central bank would leave rates unchanged at its Sept. 19-20 meeting...
You might be interested in
What US rate hike pause means for Indian markets
16, Jun, 23Will the Fed move on interest rates and its hawkish commentary impact interest rates and markets in India?
US Fed meet begins today: Status quo likely; future rate trajectory closely eyed
31, Oct, 23The Feds outlook for future policy actions and view on inflation will be critical, particularly in the backdrop of the recent surge in bond yields. For 2024, Fed officials had revised their interest rate projections, expecting the federal funds rate at 5.00-5.25% by the end of 2024.
The Fed fights inflation, the markets fight the Fed: Sonal Desai, Franklin Templeton
17, May, 23Markets are currently pricing significant interest rate cuts between now and January of next year.
Fed holds rates at 22-year high, signals concern on yield rise
01, Nov, 23The decision left the target range for the benchmark federal funds rate unchanged at 5.25% to 5.5%, the highest since 2001, as part of a strategy to slow the pace of rate increases as the central bank nears the end of its tightening campaign. The S&P 500 index and Treasuries extended their rally while the dollar slipped after the announcement.
The US Federal Reserve’s approach to risk could endanger a soft landing
01, Feb, 24America's central bank is in go-slow mode, signalling that a policy pivot is not imminent. Is it being a bit too caution about inflation?
Fed officials divided in July over need for more rate hikes, minutes show
17, Aug, 23US Treasury yields hit session highs after the release of the minutes while US stocks extended losses. The dollar was trading higher against a basket of currencies.
Fed minutes show unity on cautious approach to future rate hikes
22, Nov, 23Federal Reserve policymakers at their most recent meeting united around a strategy to ‘proceed carefully’ on future interest-rate moves and base any further tightening on progress toward their inflation goal.
Federal Reserve delivers small rate hike amid recent financial turmoil in U.S.
22, Mar, 23The Federal Reserve raised interest rates by a quarter of a percentage point on March 22 amid recent turmoil in financial markets spurred by the collapse of two U.S. banks, Silicon Valley Bank (SVB) and Signature Bank.
Column: One-off rate hike 'skip' would be Fed first: McGeever
08, Jun, 23If the Federal Reserve 'skips' raising interest rates next week only to tighten monetary policy again a month later, which is what some U.S. central bank officials are indicating and markets are pricing, it will be the shortest pause in the modern era.
'Almost all' Federal Reserve officials agreed to skip June hike: Minutes
05, Jul, 23US News: While "some participants" wanted to move ahead with a rate hike in June because progress in cooling inflation had been slow, "almost all participants