[UPDATE] Fed minutes show most officials expect another rate hike by year end

The minutes. The Federal Reserve released minutes on Wednesday, Oct. 7, from its Sept. 15-16 meeting. They show most officials judged that another increase in the federal funds rate (the overnight bank borrowing rate that steers loan costs) would likely be appropriate by year end. The September hike. At that meeting the Fed raised its target a quarter point to 3.75%-4%. It was the first hike in about three years, and every official backed it. “In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.” — Fed Governor Michael Barr The other camp. Others are slower to commit. Since the meeting, Vice Chair Philip Jefferson and New York Fed President John Williams have signaled they want more data first. What next. The Fed meets again in late October. Futures traders give an October hold about 80.6% odds, per The Hill, and expect a hike in December.