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Fed June minutes point to higher year-end rates, ING says

ING notes nine Fed officials penciled in higher rates by year-end, leaving scope for further tightening if inflation remains elevated.

Reported · Written up by our desk · Major Pairs

ING strategists Michiel Tukker and Benjamin Schroeder said the Federal Reserve’s June minutes reinforced a more hawkish stance even though the policy rate was left unchanged.

They highlighted that nine officials projected higher rates by year-end and that most participants appear to expect further policy firming if inflation stays elevated, citing factors including AI-driven demand, high energy prices, and tariffs.

ING’s base case is for moderation, but the minutes raise the risk that rate expectations could be revised higher depending on whether inflation pressures persist, according to the strategists’ note.

In FX-market knock-ons included in the same briefing, FXStreet’s insights team said GBP/USD held gains near 1.3400 while EUR/USD consolidated above 1.1400, alongside a modest USD pullback and a rebound in gold after a three-day decline.

Latest closeGold $4,023.80 ▼1.2%|EUR/USD 1.139 ▼0.1%|GBP/USD 1.329 ▼0.5%

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