Fed minutes point to faster rate hikes

Policymakers are concerned about the labour market

clock • 1 min read

Federal Reserve policymakers have said rates in the US will increase “relatively soon”, as the country’s tight labour market continues to put pressure on its economy.

At the meeting in December, policymakers said that increasing rates faster than previously anticipated "may become warranted".  The Fed also discussed the shrinking of its almost $9trn balance sheet, which grew rapidly during the pandemic. Fed expects to raise rates three times next year "Almost all participants agreed that it would likely be appropriate to initiate balance sheet runoff at some point after the first increase in the target range for the federal funds rate," the minutes said. "However, participants judged that the appropriate timing of balance sheet runoff would l...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Trump confirms copper tariffs and punishes Brazil with 50% levies
US

Trump confirms copper tariffs and punishes Brazil with 50% levies

Latest escalation in global trade war

Sorin Dojan
clock 10 July 2025 • 2 min read
Trump's 50% tariff threat sends copper prices to record highs
US

Trump's 50% tariff threat sends copper prices to record highs

Pharma imports also in danger

Sorin Dojan
clock 09 July 2025 • 1 min read
JPMAM's Katie Magee: US equities provide a lesson in long-term thinking

JPMAM's Katie Magee: US equities provide a lesson in long-term thinking

Test of investor resolve

Katie Magee
clock 04 July 2025 • 3 min read
Trustpilot