what else did the fed say about interest rates?
A “few” central bank officials said there was a case for hiking interest rates, but they later supported a decision to leave rates unchanged, minutes show. Other officials viewed the Federal Reserve’s rate policy as too restrictive, suggesting support for a cut, though they also ultimately backed a vote to leave rates on hold. “Many” participants said interest rates would be “within or slightly below” the current range by the end of the year, and at the same time, “many other” participants assessed that interest rates would be higher.
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key background
The Federal Reserve has cited stubborn inflation in recent months as a possible reason to hike interest rates. Nine of the Federal Open Market Committee’s 18 members indicated they favored at least one interest rate hike this year following last month’s vote, after a “majority” of officials said a rate hike may be appropriate if inflation persisted above the Fed’s 2% goal. Consumer prices have steadily increased as the Iran war sent oil and gas prices surging, and core consumption expenditures index data—the Fed’s preferred inflationary reading—showed annual inflation hit 3.4% in May, the fastest rate in nearly three years. Core Consumer Price Index data similarly hit a three-year high, showing costs rose 4.2% annually as gas prices surged 59% year-over-year.
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further reading
ForbesFed Holds Interest Rates Unchanged In Kevin Warsh’s First Meeting—But Higher Rates Are ExpectedBy Ty Roush
ForbesTrump’s Reshaped Fed Leaning Toward Interest Rate HikesBy Ty Roush