The Economic Information Daily, on the 8th, reported that the U.S. Federal Reserve released on Wednesday (the 7th) the minutes of the Federal Open Market Committee (FOMC) meeting held on September 15-16, showing that voting officials unanimously supported a 25-basis-point rate hike. Some officials believed that rate hikes were necessary based on their assessment of the economic outlook, reflecting their heightened concerns over high inflation.
The minutes also indicated that most participants believed that if inflation continues to run above the 2% target, one more rate hike might be needed this year.
The minutes revealed that some officials considered further policy tightening necessary to curb inflation, which remains elevated, while others advocated a more cautious approach, expressing concerns about risks such as weakening job growth.
The minutes further showed that despite the recent rise in long-term U.S. Treasury yields, officials believed that "financial conditions still appear supportive of economic growth, with stock prices having risen significantly so far this year and corporate bond spreads remaining relatively narrow."
According to the minutes, there were 12 voting FOMC officials present at the meeting, and the vote on the rate hike was 12 to 0, rather than all 19 attendees having voting rights.
Markets currently expect a higher likelihood that the Fed will hold rates steady at its late-October meeting. According to Reuters data, as of October 7, market bets on a rate hike in October had dropped to about 20%, but the possibility of another hike in December remains in investors' focus. (yc)
The minutes also indicated that most participants believed that if inflation continues to run above the 2% target, one more rate hike might be needed this year.
The minutes revealed that some officials considered further policy tightening necessary to curb inflation, which remains elevated, while others advocated a more cautious approach, expressing concerns about risks such as weakening job growth.
The minutes further showed that despite the recent rise in long-term U.S. Treasury yields, officials believed that "financial conditions still appear supportive of economic growth, with stock prices having risen significantly so far this year and corporate bond spreads remaining relatively narrow."
According to the minutes, there were 12 voting FOMC officials present at the meeting, and the vote on the rate hike was 12 to 0, rather than all 19 attendees having voting rights.
Markets currently expect a higher likelihood that the Fed will hold rates steady at its late-October meeting. According to Reuters data, as of October 7, market bets on a rate hike in October had dropped to about 20%, but the possibility of another hike in December remains in investors' focus. (yc)
