Federal Reserve officials showed no appetite for a series of further interest-rate hikes after September's meeting, minutes released Wednesday show. All 19 officials backed raising the benchmark rate to 3.75%-4%, though they split on why. The same day, President Trump criticized the rest of the Fed board over its approach to interest rates.
Federal Reserve officials showed no appetite for a series of interest-rate hikes at their September policy meeting, according to minutes released Wednesday. All 19 top Fed officials agreed to raise the benchmark rate to a range of 3.75% to 4%, though they differed on why the move was needed.
Officials split on their reasoning
Many officials framed September's hike as insurance against sticky inflation, the minutes showed. A smaller number said the increase was necessary to fight inflation directly.
Trump targets Fed board over interest rates
Trump was asked by a reporter Wednesday about mortgage rates. According to Reuters: "would like to see the country do badly", Trump said of the Fed board, distinguishing it from Chairman Kevin Warsh, whom he praised.
Trump said the rest of the board wants that outcome because he believes interest rates should come down. His remarks came after the 30-year mortgage rate last week hit its highest point in almost three years.
Bessent blames the energy market
Treasury Secretary Scott Bessent, in the Oval Office with Trump, said inflation was high because of an energy shock. He said energy markets would be well supplied once the Iran conflict is resolved, pulling inflation toward the Fed's target and bringing mortgage rates and the 10-year yield back down.
Sources: MarketWatch (snippet-based), Investing.com
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