Rate hike a ‘live’ option
BUSINESS RECORD STAFF Aug 19, 2015 | 8:30 pm
1 min read time
198 wordsAll Latest News, Banking and FinanceThe minutes of last month’s meeting of Federal Reserve officials suggest that interest rates could go up in September after being held between zero and 0.25 percent since December 2008, MarketWatch reported.
The minutes of the meeting were released today. They are a closely watched indicator of Fed action, or inaction, on interest rates.
Officials thought economic conditions needed for a rate increase were “approaching,” suggesting that a rate hike was a “live option,” MarketWatch said.
Supporters of a rate hike made several arguments, including that an appreciable delay in a tightening monetary policy would spark inflation or financial instability.
A minority of Fed officials counseled patience, noting that there were no grounds to think inflation would move back to the 2 percent annual target, particularly because of the strong dollar and recent drop in crude oil prices.
Bloomberg reported that officials saw more room for improvements in the labor market and additional signs that inflation is moving toward their goal.
Most meeting participants “judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point,” according to minutes of the July 28-29, Bloomberg reported.
The next meeting is Sept. 16-17.
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