# Fed Minutes Signal Rate Hike by Year-End

> US Fed minutes show policymakers expect another interest rate hike before year-end as inflation stays high.
- Title: Fed Minutes Signal Rate Hike by Year-End · The Economic Times
- Summary: US Fed minutes show policymakers expect another interest rate hike before year-end as inflation stays high. US Federal Reserve members plan another interest…
- Keywords: us fed, interest rate hike, inflation, pce inflation, federal reserve, monetary policy, us unemployment, fed minutes, fomc, central bank, money, business
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/us-fed-minutes-show-members-backing-another-rate-hike-before-year-end/articleshow/134773656.cms
- Published: 2026-10-07T18:53:00+00:00
- Read time: 1 min
- Topics: us fed, interest rate hike, inflation, pce inflation, federal reserve, monetary policy, us unemployment, fed minutes, fomc, central bank, money, business
## Fed Minutes Show Rate Hike Expectation
US Federal Reserve minutes indicate most policymakers expect another interest rate increase by year-end to combat persistent inflation.

> most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end
## Federal Funds Rate Raised 25 Basis Points
The Federal Open Market Committee voted unanimously to raise the benchmark rate by 25 basis points to a range of 3.75% to 4%.
## Inflation Stays Above 2% Target
US households and businesses have faced years of elevated prices since the pandemic, with inflation remaining above the Fed’s long-term 2% target for more than five years.
## Inflation Risks Tilted Upside
Most Fed participants assessed that inflation risks were tilted to the upside while labor market risks had diminished and were now broadly balanced.

> almost all participants assessed that while inflation risks were tilted to the upside risks to the labour market had diminished and were now broadly balanced
## PCE Inflation Peaks and Rises
PCE inflation peaked at 7.2% in June 2022 before declining to 2.2% in September 2024, then rose again to 3.8% in May 2024.
## Geopolitical Pressures Boost Inflation
Recent geopolitical developments, including the Iran war, have increased energy costs and contributed to inflation pressures.

> they noted that ongoing geopolitical developments which had pushed up prices for crude oil and refined fuel products were contributing to inflation pressures
## Key takeaway

US Federal Reserve members plan another interest rate increase by year-end to combat persistent inflation.