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Fed minutes keep another rate hike on the table into year-end

Most FOMC participants said an additional federal funds rate increase would likely be appropriate by year-end, while officials reiterated they would stay data dependent and keep an open mind at each meeting.

Reported · Written up by our desk · Central Banks

Minutes from the September 15 to 16 FOMC meeting, covered by Action Forex, showed that the Fed’s tightening bias remains intact even though policymakers did not specify when a next move should occur.

Most participants judged that “another increase” in the federal funds rate would likely be appropriate by year-end, and officials stressed they would approach each meeting with an open mind and respond to incoming data, leaving an October pause compatible with the discussion.

The minutes also reflected a hawkish view of inflation risks, with higher energy prices, an AI investment boom that could lift aggregate demand, and potential further tariff increases cited as sources of pressure.

Action Forex further noted that while some policymakers viewed a higher rate path as insurance against persistent inflation, others said they considered it necessary under their assessment of the policy outlook.

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