By CHRISTOPHER RUGABER | AP Economics Writer
WASHINGTON — Some Federal Reserve officials pushed to raise the Fed’s key interest rate by one-quarter of a percentage point at their meeting last month to intensify their fight against high inflation, though the central bank ultimately decided to forgo a rate hike.
In a sign of growing division among the policymakers, some officials favored a quarter-point increase or said they “could have supported such a proposal,” according to the minutes of the June 13-14 meeting released Wednesday. In the end, the 11 voting members of the Fed’s interest-rate setting committee agreed unanimously to skip a hike after 10 straight increases. But they signaled that they might raise rates twice more this year, beginning as soon as this month.
In Fed parlance, “some” is less than “most” or “many,” evidence that the support for another rate hike in June was a minority view. And some who held that view were likely unable to vote at the meeting; the 18 members of the Fed’s policymaking committee vote on a rotating basis.
Though last month’s vote to keep rates unchanged was unanimous, it is relatively uncommon for the central bank to stipulate in the minutes of Fed meetings that some officials had disagreed with the committee’s decision.
Overall, the minutes echoed previous comments from Chair Jerome Powell that the Fed will likely keep raising rates this year, with a hike at its next meeting in three weeks considered highly likely.
“Barring any surprises, the Fed will likely increase rates in July after the hawkish pause in June,” said Jeffrey Roach, chief economist for LPL Financial.
Twelve of the 18 members of the rate-setting committee have projected at least two more rate hikes this year, according to the members’ projections released last month. Four envisioned one more increase. Just two officials foresaw keeping rates unchanged.
Raphael Bostic, president of the Federal Reserve Bank of…
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