Fed Officials See ‘Restrictive’ Policy Staying In Place Until Inflation Eases, Minutes Show  

• Federal Reserve officials differed on the need for additional interest rate hikes during their September meeting.
• The majority agreed on the necessity of keeping rates elevated until convinced that inflation is heading back to the target of 2%. A summary of the meeting indicated that most participants judged one more rate increase would likely be appropriate, while some believed no further increases would be warranted.
• The meeting did not result in a rate hike, but about two-thirds of the committee indicated the possibility of one more increase before the year's end. Some officials noted the need to proceed carefully based on incoming data and maintain a restrictive policy until confident about sustainable inflation reduction.
• Markets showed mixed reactions after the minutes' release, and expectations for additional rate hikes were scaled back based on fed funds futures market data. Concerns about inflation, upside risks to prices, resilient consumer spending, and potential financial pressures on households were discussed during the meeting.
• Inflation data, including the producer price index, indicated progress toward the Fed's 2% target, but some concerns remain regarding the inflation outlook.

(Source: CNBC)