Some members of the Federal Reserve’s Open Market Committee want to make a “relatively prompt” rate hike based on the economy’s progress, according to the minutes of the committee’s last meeting.
But the minutes, released Wednesday, also showed that most members agreed more data was needed to move up the schedule of rate hikes.
“Many participants noted that if convergence toward the Committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated,” the minutes stated.”
“Indeed, some participants viewed the actual and expected progress toward the Committee’s goals as sufficient to call for a relatively prompt move toward reducing policy accommodation to avoid overshooting the Committee’s unemployment and inflation objectives over the medium term.”
The minutes also indicated a sense that the labor market has improved and moved closer to normal.
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At its July meeting, the Federal Reserve’s Open Market Committee reduced its monthly bond purchasing program by another $10 billion and held its targeted funds rate near zero.
Investors, though, are looking to discern clues on how close the FOMC is to raising interest rates. Philadelphia Fed President Charles Plosser offered a dissenting vote, and the statement indicated that some members were getting concerned with the central bank’s ultra-loose monetary policy.