Fed Sees Balance-Sheet Move Soon as Inflation Debate Heats Up
- FOMC split among those urging patience, some in rate-hike camp
- Equities prompt discussion of financial-stability risks
Federal Reserve officials engaged in a detailed debate about inflation while keeping the door open for a September announcement on the timing of balance-sheet reductions, according to minutes from their policy meeting in July. Bloomberg's Christopher Condon reports on 'Bloomberg Markets.' (Source: Bloomberg)
Federal Reserve officials engaged in a detailed debate about inflation while keeping the door open for a September announcement on the timing of balance-sheet reductions, according to minutes from their policy meeting in July.
The minutes showed a majority of Federal Open Market Committee participants sticking with a forecast that inflation would gradually rise to their 2 percent target over the medium term. However, “many” saw some “likelihood that inflation might remain below 2 percent for longer than they currently expected,” according to minutes from the July 25-26 Federal Open Market Committee meeting released in Washington on Wednesday. “Several indicated that the risks to the inflation outlook could be tilted to the downside,” the minutes said.