The Federal Open Market Committee agreed that if the economy performs as expected “it would likely soon be appropriate for the committee to take another step” in raising rates, according to the minutes from the May 1-2 meeting. During the meeting, committee members decided to hold rates between 1.5 to 1.75 percent. The Committee will next meet June 12-13.
Committee members continued to debate the inflation path as it moves closer to the “symmetric” 2 percent target. “Several participants suggested that the underlying trend in inflation had changed little, noting that some of the recent increase in inflation may have represented transitory price changes in some categories of health care and financial services,” the minutes read.
There was uncertainty over “the range of possible outcomes for economic activity and inflation,” depending on the Administration’s trade policy. Some noted concern the ongoing trade talks will cause uncertainty, dampening business sentiment and spending.
Read the FOMC minutes.