From ABC7 New York · · 1m 10s
Fed Minutes: Rate Hike Likely This Year
Federal Reserve officials expect another interest rate increase in 2026 to combat persistent inflation.
In brief
Federal Reserve officials expect another interest rate increase in 2026 to combat persistent inflation. Federal Reserve officials expect another interest rate increase in 2026 to combat persistent inflation. Originally reported by ABC7 New York.
Fed Minutes
Federal Reserve officials expect another interest rate increase in 2026 to combat persistent inflation.
Inflation Still Elevated
The Fed minutes show inflation remains elevated and has not made much progress toward their 2% target in recent months.
Rate Increase in 2026
The Fed increased its key interest rate by a quarter-point to about 3.9% at its Sept. 15-16 meeting, its first increase in three years.
Trump Criticizes Fed
President Donald Trump criticized the Fed’s rate-setting committee for voting to raise rates, calling them 'very political'.
“They’re raising rates to make Trump do as bad as they can possibly do”
Economic Impact
Higher rates have lifted costs for groceries, gas, and housing as affordability becomes a leading issue in the upcoming midterm elections.
Future Rate Hikes
Wall Street investors forecast the Fed will keep rates unchanged at its next meeting Oct. 28-29 but raise them in December.
The one thing
Federal Reserve officials expect another interest rate increase in 2026 to combat persistent inflation.
