Fed minutes reveal growing support for rate hikes

JUST IN: Fed minutes reveal growing support among officials for interest rate hikes if inflation fails to cool, exposing deep divisions over the outlook.

Rate hikes are back on the Fed's table. In writing.

The minutes from the latest meeting just dropped, and they show growing support among officials for raising rates if inflation refuses to cool. Not holding. Not cutting. Raising. That's the word Wall Street spent all year pretending it would never hear again.

And the same document exposes a committee that's genuinely split. Some officials see inflation as sticky enough to warrant tightening, others still want patience. When the Fed can't agree with itself, markets get to fill in the blanks, and they usually fill them in with volatility.

Every trader who priced in cuts for the rest of the year is now re-reading their positions with a strong coffee. The next inflation print just became the most important number of the autumn, because it decides which faction of that room wins.

This is Dave King, reporting for HIT.

Source Read the original reporting at marketwatch.com