Topline<\/p>\n
A divided Federal Reserve does not anticipate an interest rate cut before early 2027, according to minutes from the Federal Open Market Committee\u2019s June meeting released Wednesday, as a renewed conflict in the Middle East pushed odds of a rate hike by September to nearly 70%.<\/p>\n
Fed Chair Kevin Warsh said he welcomed a \u201cgood family fight\u201d over interest rate policy. <\/p>\n
Copyright 2026 The Associated Press. All rights reserved.Key Facts<\/p>\n
The FOMC, which unanimously voted last month to hold interest rates between 3.5% and 3.75%, expects no changes to the rate until a cut in Q2 2027, according to minutes <\/a>published Wednesday. <\/p>\n President Donald Trump on Wednesday said<\/a> an interim peace deal with Iran was \u201cover\u201d and the U.S. would \u201cprobably\u201d hit the country with strikes again overnight, further saying he was \u201cnot sure\u201d he wanted another deal, in remarks that briefly sent international oil benchmark Brent Crude above $80 again.<\/p>\n Equities also stumbled following Trump\u2019s remarks: The Dow Jones Industrial Average dropped about 570 points, or 1%, and the S&P 500 and Nasdaq dropped 0.3% and 0.1%, respectively.<\/p>\n The implied probability of an interest rate hike by September jumped to 68.8% as of Wednesday afternoon, up from 62% the prior day, with odds surging to 85.3% by December, according to CME Group\u2019s FedWatch tool<\/a>.<\/p>\n what else did the fed say about interest rates?<\/p>\n A \u201cfew\u201d central bank officials said there was a case for hiking interest rates, but they later supported a decision to leave rates unchanged, minutes show. Other officials viewed the Federal Reserve\u2019s rate policy as too restrictive, suggesting support for a cut, though they also ultimately backed a vote to leave rates on hold. \u201cMany\u201d participants said interest rates would be \u201cwithin or slightly below\u201d the current range by the end of the year, and at the same time, \u201cmany other\u201d participants assessed that interest rates would be higher.<\/p>\n key background<\/p>\n The Federal Reserve has cited stubborn inflation in recent months as a possible reason to hike interest rates. Nine of the Federal Open Market Committee\u2019s 18 members indicated they favored at least one interest rate hike this year following last month\u2019s vote, after a \u201cmajority\u201d of officials said a rate hike may be appropriate if inflation persisted above the Fed\u2019s 2% goal. Consumer prices have steadily increased as the Iran war sent oil and gas prices surging, and core consumption expenditures index data\u2014the Fed\u2019s preferred inflationary reading\u2014showed annual inflation hit 3.4% in May, the fastest rate in nearly three years. Core Consumer Price Index data similarly hit a three-year high, showing costs rose 4.2% annually as gas prices surged 59% year-over-year.<\/p>\n further readingForbesFed Holds Interest Rates Unchanged In Kevin Warsh\u2019s First Meeting\u2014But Higher Rates Are ExpectedBy Ty Roush<\/a>ForbesTrump\u2019s Reshaped Fed Leaning Toward Interest Rate HikesBy Ty Roush<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Topline A divided Federal Reserve does not anticipate an interest rate cut before early 2027, according to minutes…\n","protected":false},"author":2,"featured_media":531791,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,4318,85,4486,46,118946],"class_list":["post-531790","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-federal-reserve","tag-il","tag-interest-rates","tag-israel","tag-kevin-warsh"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/531790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=531790"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/531790\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/531791"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=531790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=531790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=531790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}