Economics
Fed Signals December Hike Even as Debate on Prices Persists
- Another increase ‘was likely to be warranted in the near term’
- Meeting minutes also show concerns about financial imbalances
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Federal Reserve officials meeting earlier this month saw an interest-rate increase in the near term even as tepid inflation drove divisions over the policy path and as financial stability concerns cropped up.
“Many participants thought that another increase in the target range for the federal funds rate was likely to be warranted in the near term if incoming information left the medium-term outlook broadly unchanged,” according to minutes from their Oct. 31-Nov. 1 gathering, released in Washington on Wednesday.