Fed Officials Back Rate Hikes as September Odds Hit Two-Thirds
The Federal Reserve is pushing for further rate hikes as inflation risks persist, with market pricing now assigning a two-thirds probability to a rate increase by the September FOMC meeting.
June meeting minutes revealed a split among policymakers, with a few members backing a rate increase while the majority highlighted scenarios where AI infrastructure demand, the Middle East conflict, and tariffs could keep inflation elevated. The Fed staff forecast for inflation in 2026 and 2027 was revised higher than the April projection, reflecting these pressures.
From the sources (16 posts)
@tradfi*FED MINUTES: A FEW PARTICIPANTS SAW A CASE FOR RAISING RATES BUT INDICATED THEY SUPPORTED MAINTAINING THE CURRENT RANGE AT THIS MEETING
@financialjuiceFed: Majority saw risk high inflation may affect expectations.
@zerohedge*FED: A FEW SAW CASE FOR RAISING RATES AT JUNE FOMC MEEETING
@financialjuiceFed: All officials supported leaving rates unchanged in June.
@zerohedge*FED: MOST CITED POSSIBILITY INFLATION COULD STAY HIGH DUE TO AI Inflationary AI
@financialjuiceFed: Most cited possibility inflation could stay high due to AI
@financialjuice🔴 Fed Minutes: In such scenarios almost all of those participants indicated some policy firming would likely be warranted.
@financialjuiceFed: Most participants pointed to scenarios in which inflation would remain elevated due to AI-related demand, the Middle East conflict, or tariffs.
@financialjuiceFed Minutes: Fed staff forecast for inflation in 2026 and 2027 was higher than in April forecast, reflecting the Middle East war and effects of AI buildout.
@financialjuiceFOMC June Meeting Minutes
@zerohedgeFOMC Minutes Show 'A Few' Fed Members Wanted To Hike In June, 'Majority' Fear Higher Inflation
@coinmarketcapLATEST: 🇺🇸 Fed officials were split last month on raising or holding interest rates, with newly released June FOMC minutes showing many pointed to surging AI infrastructure demand as a driver of inflation.
@bitcoinnewsJUST IN: 📈 Kalshi traders see a 54% likelihood the Fed raises rates this year, with a 62% chance the next hike before July 2027. The odds come after June meeting minutes showed policymakers split on whether rates will be above or below the
@barchartJUST IN 🚨: There is now an almost 2/3 chance of a rate hike by the September FOMC
@briansozziRT @Barchart: JUST IN 🚨: There is now an almost 2/3 chance of a rate hike by the September FOMC
@reutersFed officials fret over inflation risk, weigh rate hikes