Fed Considers Raising Interest Rates If Inflation Doesn't Decrease
· Telemundo McAllen (KTLM)
Many officials at the U.S. Federal Reserve believe the agency may need to raise its key short-term interest rate in the coming months if inflation does not ease, according to the minutes from last month's Fed meeting. The minutes from the July 28-29 meeting, released on Wednesday, do not provide details on how many of the 19 officials supported adopting higher rates. Only 12 of the 19 monetary policymakers vote on the outcome. At the meeting, officials voted 9 to 3 to keep the key rate unchanged at around 3.6%. Since then, inflation has shown some signs of cooling, although gasoline prices surged this month due to the resumption of hostilities in the Middle East. Wall Street investors now expect the Fed to remain unchanged at its next meeting in September and possibly raise rates in December, although that outlook could change. At last month's meeting, Fed officials focused intensely on the threat of persistently high inflation. They were concerned that the war with Iran, tariffs, and strong investment in artificial intelligence infrastructure were driving up prices for a variety of goods and services.
AI summary · Source: Telemundo McAllen (KTLM) →
