Economics
Fed Emphasizes Flexible Rate Path After Likely December Hike
- FOMC discusses modifying language on ‘further gradual’ hikes
- Fed minutes also flag possible IOER adjustment coming soon
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Federal Reserve officials signaled they’re adopting a more flexible approach in their gradual interest-rate increases after a likely December hike, as they try to sustain a U.S. expansion that may become the longest on record next year.
“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,’’ assuming the economy performs in line or stronger than their expectations, the central bank said in the minutes of its Nov. 7-8 session released in Washington Thursday.