WASHINGTON, D.C. — Most Federal Reserve officials expect another interest rate increase will likely be needed this year to combat inflation, as indicated in minutes released Wednesday from the central bank’s most recent meeting, according to reporting from the Associated Press.
The officials unanimously agreed that inflation was still elevated and had not made much progress toward their 2% target in recent months, the minutes said. The Fed increased its key interest rate at the Sept. 15-16 meeting by a quarter-point to about 3.9%, its first increase in three years.
The increase defied President Donald Trump’s repeated calls for the Fed to cut rates and prompted the president to criticize the Fed’s rate-setting committee, though he still expressed support for Chairman Kevin Warsh, whom he appointed earlier this year. The rate increase comes as Americans are already struggling with high costs for groceries, gasand housing, and as affordability has taken on a leading role in the upcoming midterm elections, just seven weeks away.
