1/ Federal Reserve officials warned of “significant” inflation risks, which could require them to raise rates again this year. At their July policy meeting, “most” Fed officials said inflation remained “unacceptably” high. A “couple” officials, however, thought the risks of raising rates too much versus too little “had become more two-sided, and it was important that the committee’s decisions balance the risk of an inadvertent overtightening of policy against the cost of an insufficient tightening.” The July meeting resulted in a quarter percentage point rate hike to a range between 5.25% and 5.5% – a 22-year high – and marked the 11th hike over the past 17 months, when they raised rates from near zero. Inflation, meanwhile, eased to 3.2% in July, down from a high of more than 9% in mid-2022. (Bloomberg / New York Times / CNBC / Wall Street Journal)
This is a companion discussion topic for the original entry at https://whatthefuckjusthappenedtoday.com/2023/08/16/day-939/