Fed minutes signal rate hike likely at September meeting
WASHINGTON — Federal Reserve officials earlier this month said that a strengthening economy meant that it would “likely soon be appropriate” to boost their benchmark interest rate, a strong signal that rates will be going up in September.
But minutes of their discussions released Wednesday also revealed deepening concerns that escalating trade wars could hurt the economy.
The CME Group’s tracking of investor expectations put the likelihood of a September rate hike at 96 per cent. Many economists believe another rate hike will follow in December.
“Another interest rate hike from the Fed is coming next month,” Paul Ashworth, chief U.S. economist at Capital Economics, said in reaction to the minutes.