Fed minutes: December rate hike possible

Economy 11/29/2018, 8:03 PM
Fed minutes: December rate hike possible

Another interest rate hike is possible in December, according to the minutes of the United States Federal Reserve released on Thursday. The Federal Open Market Committee (FOMC) pointed towards the possibility of the Fed raising benchmark target rate next month by 0.25 points.

The minutes noted that "another increase in the target range for the federal funds rate was likely to be warranted fairly soon if incoming information on the labor market and inflation was in line with or stronger than their current expectations." However, Fed officials remain worried about the "timing" of the next rate hike. The FOMC is expected to propose and approve another three rate hikes next year despite US President Donald Trump's disapproval of such central bank monetary policy decision-making.

The economic outlook remains positive, according to the Fed. Meanwhile, the issues of tariffs and surrounding trade tensions, as well as debt, were among the most heavily discussed economic risks by the committee.

Breaking the News / VK