Fed Minutes Raise Possibility Of Sooner-Than-Anticipated Rate Hikes

(RTTNews) - Reflecting concerns about the pace of inflation, the minutes of the Federal Reserve's monetary policy meeting in early November revealed some participants felt the central bank should be prepared to raise interest rates sooner than currently anticipated.

The minutes released Wednesday afternoon said various participants believe the Fed might need to both reduce asset purchases and raise rates if inflation continues to run higher than levels consistent with the central bank's objectives.

However, others argued that a patient attitude remained appropriate in light of the considerable uncertainty about developments in supply chains, production logistics, and the course of the coronavirus pandemic.

The participants still agreed that the Fed should not hesitate to take appropriate actions to address inflation pressures that posed risks to its longer-run price stability and employment objectives.

The potential for sooner-than-anticipated rate hikes comes as a number of participants expressed concerns the public's longer-term expectations of inflation might increase to a level above that consistent with the Fed's longer-run inflation objective.
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