Low Inflation Frays Fed Consensus
- Several officials worried progress to 2% inflation had slowed
- Fed camps debate pros and cons or running labor market hot
Consensus Sees Fed Balance Sheet Move in Sept.
This article is for subscribers only.
The Federal Reserve’s consensus about when to shrink its balance sheet and how to approach policy strategy in a time of low inflation is starting to fragment.
Fed officials continued to view gradual interest-rate increases as appropriate while starting the process of unwinding their $4.5 trillion balance sheet this year, minutes from their June 13-14 meeting released in Washington on Wednesday showed. But their debate highlighted divisions over the timing of roll-off and unease at recent weak readings on inflation.