FOMC minutes show the Fed ready to hike again in 2026 as AI buildout replaces tariffs as main driver of core prices
Minutes from the September 15-16 FOMC meeting showed Fed members acknowledging the need to respond to persistent inflation, with most expecting another rate hike before year-end. Several saw the effects of the AI buildout on core inflation increasing while the effects of tariffs waned. Staff noted that the market-implied path for monetary policy had risen notably over the intermeeting period.
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