A fissure appears to be developing at the Federal Reserve over when to raise interest rates: One side is preaching caution in a low-inflation environment while another worries over the price of delaying.
The divide appeared in minutes released from the Federal Open Market Committee’s July meeting, when central bank policymakers voted to hold the target rate to a range of 1 percent to 1.25 percent. The summary portrays views that inflation ultimately will get to the Fed’s 2 percent target but is clearly not there yet.
“Some participants” who counseled patience expressed “concern about the recent decline in inflation” and said the Fed “could afford to be patient under current circumstances.” They “argued against additional adjustments” until the central bank was sure that inflation was on track
Gold Soars As Oil Is Sent To The Naughty Corner
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- European update – The calm before the storm - 10/22/2018
- European open – Markets not feeling China benefit - 10/22/2018
- OANDA Market Insights podcast (episode 36) - 10/19/2018