FOMC Officials Want More Evidence of Recovery Before A Rate Hike
Aug, 20th 03:34
Most Federal Open Market Committee (FOMC) officials believe that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point, the minutes from the recent FOMC meeting said.
That passage might be read as a hint that officials saw a September rate increase in the cards, but the minutes showed officials had wide-ranging views about taking that step and several notable sources of trepidation.
The Fed has said it won’t move rates until it is more confident inflation will rise toward its 2% target after running below it for more than three years.
Some participants expressed the view that the incoming information had not yet provided grounds for reasonable confidence that inflation would move back to 2 percent over the medium term, the minutes said.
The meeting account said “almost all members” of the Federal Open Market Committee “indicated that they would need to see more evidence that economic growth was sufficiently strong” to bring inflation closer to its target before they were ready to raise rates for the first time since the financial crisis.
Considering the less hawkish tone of the minutes, the dollar slid down in the later US session against a basket of six major currency peers.