Fed policymakers divided over whether to raise rates soon: minutes
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
A security guard walks in front of an image of the Federal Reserve. REUTERS/Kevin Lamarque
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
By Jason Lange and Lindsay Dunsmuir
WASHINGTON (Reuters) - Federal Reserve policymakers agree that more economic data is needed before raising interest rates, although some see a need to tighten policy soon, according to the minutes from the U.S. central bank's July 26-27 policy meeting.
The minutes, which were released on Wednesday, showed that members of the rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook and labor market.
"Some ... members anticipated that economic conditions would soon warrant taking another step in removing policy accommodation," the Fed said in the minutes.
Several Fed policymakers, however, said a slowdown in the future pace of hiring would argue against a near-term hike, and members of the FOMC said they wanted to "leave their policy options open."
The U.S. dollar strengthened after the release of the minutes, while U.S. stocks and prices of shorter-dated U.S. Treasuries pared losses. Fed funds futures showed little change in bets on when the Fed will lift rates, with investors still expecting the next rate increase to likely come in December.
"The minutes contained more concrete indications that a consensus to raise rates is slowly building," said Brian Dolan, head market strategist at Drivewealth in New Jersey.
The Fed raised rates in December for the first time in nearly a decade, but it has since kept rates unchanged amid financial market volatility, a global growth slowdown and tame U.S. inflation.
Investors had raised bets earlier this week for a rate increase this year after two Fed policymakers said the economic stars now appear to be aligning despite weak U.S. growth in the first half of 2016.
Seventeen Fed policymakers participated in the July meeting, 10 of whom had a vote. Of the broader group of policymakers, several expressed concern that low interest rates could hurt financial stability.
The minutes came a day after New York Fed President William Dudley said "it's possible" to raise rates at the Sept. 20-21 policy meeting and Atlanta Fed President Dennis Lockhart said a hike next month is in play.
The Fed also has policy meetings scheduled in early November and mid-December. Economists see the December meeting as the most likely time for a rate increase since it follows the U.S. presidential election, according to a Reuters poll last week.
Investors will now focus on next week's annual meeting of central bankers in Jackson Hole, Wyoming, a venue the Fed often uses to telegraph policy plans.
(Reporting by Jason Lange and Lindsay Dunsmuir; Additional reporting by David Lawder; Editing by Paul Simao)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Trump is now president, but he still sees himself as leading an insurgency
- Senate approves Mattis to lead Pentagon, first Trump cabinet member
- FBI employee gets two years in prison for acting as Chinese agent
Create E-mail Alert Related CategoriesReuters
Related EntitiesDennis Lockhart, Federal Open Market Committee, William Dudley
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!