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Macro

Fed Minutes: All 19 Officials Backed September Rate Hike, Most See One More in 2025

All 19 Federal Reserve officials supported raising the federal funds rate by 25 basis points to 3.75%-4.00% at the September 15-16 FOMC meeting, the first hike since July 2023. A majority judged further increases before year-end ‘likely appropriate,’ while stressing an open mind for each meeting. Markets now price less than 20% odds of an October move, down from about 70%, shifting expectations toward December.

Original source

AI take

The unanimity behind September's hike is notable, but the minutes' real signal is the gap between official guidance and market pricing: officials lean toward another move in 2025, while traders have sharply repriced near-term odds and pushed expectations toward December. That divergence matters for rate-sensitive corners of crypto and tokenized RWAs, where the cost of carry and dollar liquidity set the tone. Whether the Fed's stated inclination or the market's more cautious timeline prevails is the open question.

Generated by AI for reference only.

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