Nearly all Fed members anticipate further rate increases due to the "unacceptably high" inflation rate.

The Fed's meeting minutes from June 13th–14th revealed that almost all policymakers supported future rate increases and expressed worry about the robust labour market and "unacceptably high" rising inflation.

The FOMC held its benchmark rate in a range of 5% to 5.25% at the conclusion of its last meeting on June 14th. It was the first time the Fed held interest rates steady after ten straight increases.

At the meeting, Fed officials revised their projection for rate increases, now anticipating a terminal rate, or peak rate, of 5.6% at the midpoint in 2023, up from the previous projection of 5.1% seen in March, indicating two further increases are to come.

Expectations for a faster rate of inflation paralleled the more hawkish course for monetary policy.

The primary inflation indicator used by the Fed, the core PCE price index, was predicted to increase to 3.9% from 3.6% in 2023. The Fed still has work to do as annualised inflation is still growing at a rate of 4.6%.

According to Investing.com's Fed Rate Monitor Tool, roughly 86% of traders anticipate that the Federal Reserve will continue raising rates at its meeting on July 25th–26th. This suggests that the markets are accepting the Fed's forecasts for future rate rises.

After asserting that monetary policy wasn't tight enough and that he would not throw out the idea of raising rates at future meetings, Fed Chairman Jerome Powell raised expectations for the Fed to begin raising rates in the weeks that followed the meeting.

On the other hand, other Fed officials are less certain that more rate increases are required to reduce inflation and argue that the present level of rates—the highest since August 2007—and the tightening that has already been implemented may be sufficient to do so.

The June monthly jobs report anticipated later this week and the June consumer inflation report due next week will both draw further investor attention ahead of the Fed's July 25th-26th meeting.

The Fed is nevertheless concerned about the labour market's sustained tightness because it threatens to raise wages and maintain strong service inflation.

(Sources: investing.com, cnbc.com)