06 Jul 2023

Odds on another rate hike at the Federal Reserve’s July meeting were left slightly higher yesterday after a record of June’s discussion showed officials were modestly more hawkish than expected. Staff forecasts pointed to a deceleration in growth and price pressures through the latter half of the year, and there was considerable uncertainty about where the cumulative effects of previous tightening efforts would appear, but “almost all” agreed that rates would need to climb further this year – and some favoured moving more quickly because “momentum in economic activity had been stronger than earlier anticipated and there were few clear signs that...