Fed meeting focus will be on hints about timing for next rate hike
Federal Reserve officials left their benchmark short-term interest rate unchanged at their meeting Sept. 20-21 but left open the door to lifting it later this year. Their postmeeting statement indicated division among policy makers about when the central bank should next raise interest rates. The minutes of the meeting, to be released Wednesday at 2 p.m. ET, are likely to provide more detail on the internal debate. Here are five things to watch for.
Rate-Increase Timing
After the Fed’s September gathering, Chairwoman Janet Yellen said the case for an increase has strengthened, but officials decided “for the time being” to wait for further evidence of rising inflation and continued jobs-market strength. The minutes will likely provide details on the Fed’s internal discussions about when to next tighten borrowing costs. Although officials insist that every meeting is a “live” possibility for interest-rate moves, economists and analysts say the rate-setting Federal Open Market Committee is highly unlikely to raise interest rates at its Nov. 1-2 meeting since U.S. presidential elections fall a week later. Any mentions of upcoming meetings—like the one in December—or clues about the timing of future increases will be closely eyed.
