Fed minutes show unanimous September hike as inflation fears build

· Economy · United States

Minutes from the Federal Reserve's September 15-16 meeting showed all 19 officials backed the decision to raise interest rates, with many supporting the move to guard against intensifying inflation pressures, and officials see another hike coming without a clear timeline. The New York Fed's Survey of Consumer Expectations showed the median one-year inflation outlook rose to 3.9 percent, the highest since May 2023. Yields stayed elevated, with the 10-year Treasury yield backing off a 24-year high after a strong auction. Gold fell to a two-month low as the dollar strengthened.

Why it matters：A hawkish Fed amid rising inflation expectations tightens global financial conditions, pressuring borrowing costs and asset prices worldwide.

Key points

  • All 19 Fed officials backed the September rate hike.
  • One-year inflation expectations rose to 3.9%, the highest since May 2023.
  • The 10-year Treasury yield pulled back from a 24-year high after a solid auction.

Sources (original reporting)

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