The Federal reserve officials are likely to raise rates one more time before the end of the year. The minutes from the Fed’s last meeting were released last week where it was noted that the persistent inflation remains the primary concern.
They released a statement that said “…most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end.” They did qualify the statement by saying they approach each meeting with an open mind and decisions are based on the latest data.
The Fed’s preferred inflation index showed core inflation for August at 3 percent, well above the 2 percent target.
The Fed has meetings scheduled for October 28 and December 9 when rates could go up. The good news is, at this point, none of the officials are expecting to raise rates any higher in 2027.