Fed Minutes: Inflation Remains Elevated

On October 7 local time, the Federal Reserve released the minutes from the Federal Open Market Committee (FOMC) meeting held on September 15-16. The minutes show that all members unanimously agreed to raise the federal funds rate target range by 25 basis points to between 3.75% and 4% to support the committee's dual mandate. Most participants believed it would be appropriate to further raise the federal funds rate target range before the end of this year, indicating that most officials still expected at least one more rate hike in September. Meanwhile, inflation remains well above the committee's 2% target. Participants pointed out that inflation remains high and insufficient progress has been made in reducing it over recent months. They noted that ongoing geopolitical tensions have pushed up crude oil and refined product prices, while a surge in investments related to artificial intelligence has also exacerbated inflationary pressures.