The raised interest rates on Sept. 16, its first increase since 2023, and the vote was unanimous.
Minutes released Oct. 7 showed officials expect another increase before the end of the year to fight inflation that has run above their 2% target for more than five years. They gave no timing. The Fed next decides on rates Oct. 28 and again on Dec. 9.
The Fed's own forecast points to one more hike this year. put roughly 42% odds on two, according to — a gap between what the central bank says and what traders are pricing.
The Fed's preferred inflation gauge showed core prices up 3% in August and headline up 3.4%, both still well above target but lower than expected.
Of the 18 officials who submitted forecasts, 16 said they expected another increase.
cut his year-end S&P 500 target to 7,900 from 8,400, saying the risks of a downturn have risen over the next three to six months.
A U.S.-China summit in Washington on Sept. 24, between President Donald Trump and 's Xi Jinping, is expected to produce few breakthroughs on tariffs or AI. Any sharp escalation that costs the U.S. a key intermediary in its war with Iran could worsen an energy crisis.
Oil prices remain above $100 a barrel. Just 49% of S&P 500 stocks are above their . Treasury yields are at their highest since 2002, and a New York Fed survey showed consumer fears over rising prices at their highest since May 2023.
Companies reporting earnings the week of Sept. 21 include , , , , and .
The Fed says another hike is coming, but the inflation data is moving its way and officials have stressed they don't need to rush — the case for a second increase is weakening even as the central bank says one is likely.