Fed minutes showed a majority of officials judged it may be appropriate to raise the federal funds rate target range again before year-end to rein in inflation that has run above target for more than five years. The minutes gave no specific timing; officials said elevated prices and a still-strong labor market could prompt a second hike this year and stressed a meeting-by-meeting, data-dependent approach. September discussions flagged risks that inflation could prove persistent, the labor market

2026-10-08

Fed minutes showed a majority of officials judged it may be appropriate to raise the federal funds rate target range again before year-end to rein in inflation that has run above target for more than five years. The minutes gave no specific timing; officials said elevated prices and a still-strong labor market could prompt a second hike this year and stressed a meeting-by-meeting, data-dependent approach. September discussions flagged risks that inflation could prove persistent, the labor market is near full employment, and overall growth has picked up. Many participants described a path of further increases in the funds rate as a prudent risk-management measure to guard against inflation staying above target if demand is stronger than expected or adverse supply shocks occur.