FOMC minutes: Almost all participants see another rate hike is likely to be warranted fairly soon

The minutes from the Federal Reserve’s November 7-8 monetary policy meeting have been published with key highlights, via Reuters, found below.

• Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon.
• Members continued to expect that further gradual increases in the target range for the federal funds rate would be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term.
• Participants commented on how the Committee's communications in its postmeeting statement might need to be revised at coming meetings.
  • Particularly the language referring to the Committee's expectations for "further gradual increases" in the target range for the federal funds rate.
• Some participants pointed to anecdotal evidence regarding higher tariffs and uncertainty about trade policy, slowing global demand, rising input costs, or higher interest rates as possible factors contributing to the slowdown.
• Contacts in many Districts indicated that input costs had risen and that increased tariffs were raising costs.
• A couple of participants noted that the federal funds rate might currently be near its neutral level.
  • Further increases in the federal funds rate could unduly slow the expansion of economic activity and put downward pressure on inflation and inflation expectations.
• Some participants viewed economic and financial developments abroad, including the possibility of further appreciation of the U.S. dollar, as posing downside risks for domestic economic growth and inflation.
• A few participants, while viewing further gradual increases in the target range of the federal funds rate as likely to be appropriate, expressed uncertainty about the timing of such increases.

About the FOMC minutes

FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.