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FOMC minutes show unanimous September hike and bias toward tightening

The minutes cited upside risks to inflation, with officials pointing to persistent core services and goods inflation and higher energy prices.

Reported · Written up by our desk · Central Banks

The Federal Open Market Committee raised the federal funds rate to a target range of 3.75% to 4.00% at its September meeting in a unanimous decision, according to the minutes reviewed by Action Forex.

The minutes indicate broad agreement that the September hike was warranted and that policymakers are leaning toward additional tightening, with many participants judging that another increase would be appropriate by year end.

On inflation, participants said they had not seen sufficient progress and generally viewed the risks as skewed to the upside, citing persistent core services and goods inflation and higher energy prices.

Officials also noted stable longer term inflation expectations but some evidence that short term inflation expectations were increasing, while describing activity as expanding at a solid pace supported by robust business investment and resilient consumer spending.

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