Economics
Inflation Now Guiding Light on Fed’s No-Hurry Rate Rise Path
- Minutes of Dec. FOMC reveal concern from some on tepid prices
- Inflation risks include stronger dollar, cheaper oil
The Marriner S. Eccles Federal Reserve Board Building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Inflation -- or the lack of it -- is now the must-watch indicator to help determine the pace of Federal Reserve interest rate increases.
If there were any doubts about the role price pressures will play in the Fed’s decision-making, the minutes of the latest Federal Open Market Committee meeting, released Wednesday, dispelled them. A large part of the debate revolved around downside risks to inflation, even though officials said they were "reasonably confident" they’d reach their goal over the medium term, the minutes showed.