June meeting minutes reveal nine Fed officials project rate hikes by year-end amid sticky inflation risks.
Federal Reserve officials indicated a more hawkish stance in June minutes, with nine policymakers forecasting higher rates by year-end. The shift reflects concerns over persistent inflation driven by AI-fueled demand, elevated energy prices, and tariffs.
While the Fed held rates steady in June, most officials agreed further tightening could be warranted if inflation remains elevated. The minutes underscored a stronger-than-expected labor market and economic outlook as key factors behind the hawkish tilt.
ING strategists noted the Fed’s cautious tone but maintained their base case for inflation moderation, suggesting potential divergence between projections and actual policy moves.