Fed minutes show split on rates as some officials saw case for hike
What's new: Futures kept pricing in a possible September increase even after the June 16-17 meeting ended with rates unchanged at 3.5%-3.75%.
Federal Reserve officials were divided at their June 16-17 meeting over whether interest rates may need to move up or down later this year, minutes released Wednesday showed. The Federal Open Market Committee voted unanimously in Kevin Warsh’s first meeting as chair to keep the benchmark rate at 3.5% to 3.75%. The minutes showed many policymakers thought rates could end 2026 at or slightly below current levels if inflation eases, while many others saw rates ending above the current range. A few participants already saw a case for raising borrowing costs. Officials pointed to broadening price pressures, including transportation, air fares and petrochemical products, while also flagging AI infrastructure demand as a source of higher technology and electricity costs. Markets reacted little.