Fed minutes show split over reasons for September rate hike

Minutes released Wednesday show the Federal Reserve's policymakers voted unanimously to raise rates in September but split on whether the step was precautionary or demand-driven tightening.

• The Fed raised its target range by a quarter point to 3.75%-4% at its September 15-16 meeting, with the vote unanimous.
• Some participants saw the hike as precautionary against energy and supply shocks spreading, while others cited demand-driven inflation, the minutes showed.
• Most participants viewed another rate increase as likely appropriate by year-end, the minutes showed.
• Investors now expect the Fed to hold rates in October before raising borrowing costs again in December.