FOMC Minutes Show U.S. Economy Strong, To Warrant Further Rate Hikes

Posted on 10/17/2018 1:28 PM

The U.S. economic highlight at midweek was this afternoon's release of the minutes from the Federal Reserve's Federal Open Market Committee (FOMC) meeting that was held in late-September. The minutes confirmed the U.S. economy is on a strong growth path, which FOMC members said likely warrants further, gradual increases in interest rates.

The FOMC minutes said the Fed may, for a while, move interest rates into a "restrictive" mode. However, the Fed wants to keep U.S. economic growth on an even keel.

On the inflation front, the minutes saw a slight upward revision in inflationary pressures. Some FOMC members saw acceleration in labor costs, but still only modestly.

Some on the committee also said a stronger U.S. dollar could crimp economic growth and produce higher inflation.

The recent U.S. hurricanes will only impact the U.S. economy in a modestly negative fashion, the minutes said.

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