FOMC Minutes Signal Most Officials Back Year-End Rate Hike Amid Sticky Inflation

Federal Reserve officials leaned toward further monetary tightening, with minutes showing most participants viewed an additional rate hike by year-end as likely appropriate. At the September meeting, policymakers unanimously raised the benchmark interest rate to 3.75%-4.00%, though many characterized the increase as an insurance policy rather than the start of an extended series of hikes. Officials cited upside inflation risks from energy costs and artificial intelligence investments, while Fed staff estimated August headline PCE at 3.8% and core at 3.4%, projecting inflation will not reach the 2% target until 2029.