CNN: "Tensions are high at the Fed”
Fed officials had a heated debate about whether to hike rates again before ultimately deciding to hold them steady in June, according to minutes from the most recent meeting, released Wednesday.
They also appeared fairly committed to hiking rates once again at their upcoming meeting later this month. "Almost all" policymakers agreed that the Fed would likely have to institute more tightening this year, according to the minutes.
"The minutes suggest a lot more disagreement than usual over the decision and the need for considerable compromise from the hawks to reach the unanimous vote," said Sam Stovall, chief investment strategist at CFRA Research, in a note on Wednesday.
While policymakers ultimately voted unanimously to briefly pause their regiment of hiking, the release showed officials frequently voiced concern about giving up tightening policy prematurely, reports my colleague Bryan Mena.
Still, it's likely that the hawks "will have the upper hand at the upcoming July 25-26 [Federal Reserve policy] meeting," wrote Stovall. That means they will likely raise rates by a quarter of a percentage point, "as conditions will not have changed significantly since the June 14 meeting in order to keep further tightening at bay," he added.
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