Fed minutes show most officials back another 2026 rate hike
Fed chairman Kevin M. Warsh described the September increase as removing a “dose of accommodation so that financial and credit conditions would be more consistent with our ultimate objectives,” the New York Times reported.
Warsh has not spoken publicly since that September 16 press conference, according to Reuters.
Staff estimates in the minutes put total PCE inflation at 3.8 percent in August and core PCE at 3.4 percent, with 3.6 percent and 3.2 percent respectively under the new Bureau of Economic Analysis methodology.
The unemployment rate was 4.1 percent in July and August.
Nominal Treasury yields rose around 35 basis points across the two- to 10-year segment over the intermeeting period, the minutes record, attributed in market commentary to geopolitical developments, the US Treasury buyback program, and private debt issuance financing AI infrastructure.
