Most members of the Federal Open Market Committee believe they may need to raise the target range for the federal funds rate a second time before the end of the year, although that decision will depend on further information, according to minutes from the FOMC’s most recent meeting.
During its September meeting, the FOMC voted unanimously to raise the target range 25 basis points to 3.75% to 4%, marking the first rate increase since 2023. The minutes show FOMC participants remain concerned about inflation, with many seeing another rate increase before 2026 closes, although that decision will be influenced by new data.
“Participants emphasized… that they approached each meeting with an open mind and decisions at future meetings would depend on incoming information and its implications for the outlook and the balance of risks,” according to the minutes.
