Fed minutes show another US rate hike is on the cards, and soon
Washington — US central bankers discussed raising interest rates soon to counter excessive economic strength but also examined how global trade disputes could batter businesses and households, minutes of the Federal Reserve’s last policy meeting showed on Wednesday. The Fed has been raising rates gradually since 2015 and policymakers are now concerned the economy is so strong that inflation could rise persistently above the central bank’s 2% target. Fed officials at the July 31-August 1 policy meeting held rates steady but their discussion made it clear they are considering another rate hike soon. The Fed has raised rates twice this year. "Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation," according to the minutes. Policymakers generally noted that spending by US households and businesses appeared to have "considerable momentum", according t...
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