Federal Reserve's September Meeting Minutes to Be Released Tonight, May Reveal How Many More Rate Hikes Are Needed

Golden Finance reports that on October 7, according to Jintou Data, the Federal Reserve's September meeting minutes will be released at 2 a.m. Beijing time on Thursday. The minutes may further reveal why the Fed raised interest rates by 25 basis points in September and how officials assess the current tightness of monetary policy. It may also disclose how many more rate hikes are being considered. During the press conference following the September decision, Federal Reserve Chairman Kevin Warsh stated that it is difficult to describe overall financial conditions as "restrictive." The Chicago Fed National Financial Conditions Index shows that U.S. financial conditions have continued to ease since their peak in the fall of 2022; the ICE BofA U.S. High Yield Bond Option-Adjusted Spread remains relatively narrow. On inflation, overall PCE rose 3.4% year-on-year in August, and core PCE rose 3.0% year-on-year, both unchanged from July. The current effective federal funds rate is approximately 3.9%.