Fed Signals Another Rate Hike

Federal Reserve officials signaled that another interest rate increase would likely be needed by year’s end, minutes from their September meeting showed. The Fed had unanimously raised its benchmark rate by a quarter point, setting a target range of 3.75% to 4%. Officials judged inflation still elevated and well above the Fed’s 2% goal, after more than five years without sustained price growth at that level. The minutes said policymakers would keep an open mind and judge future moves by incoming economic data. Many saw another hike as insurance against stubborn inflation, including from energy shocks or strong demand. Markets expected no move in October, with another decision due in December.