Most Fed Officials Backed Continued Gradual Rate Increases
- Central bankers discussed reasons to speed up, slow down hikes
- Debate also focused on risks of a flattening yield curve
This article is for subscribers only.
Federal Reserve officials in December debated the risks to the U.S. economic outlook, with some concerned about low inflation and others pointing to robust growth that was about to get a further boost from tax cuts.
Most participants reiterated support for “continuing a gradual approach to raising the target range” for the benchmark policy rate, according to minutes of the Federal Open Market Committee’s Dec. 12-13 meeting released Wednesday in Washington. U.S. central bankers raised interest rates by a quarter percentage point and penciled in three more hikes for 2018, according to the median estimate.