Fed officials expressed that they could raise interest rates “fairly soon” as an improving economy and the possibility of faster than anticipated inflation could put the economy at risk of overheating, according to the minutes of the meeting released today.
“Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon if incoming information on the labor market and inflation was in line with or stronger than their current expectations,” the minutes said.
The minutes showed that Fed officials grappled with uncertainty on numerous issues, including the Trump administration’s fiscal plans and the potential effects of a rising dollar.
The Fed has left the door open for the possibility of raising rates at its next policy meeting on March 14-15, as some Federal Open Market Committee members noted that it might be appropriate to move “potentially at an upcoming meeting.” The FOMC voted unanimously to leave rates at 0.50-0.75 basis points at its last meeting.
Read the FOMC Minutes.