Fed offers hints at potential for early rate hike
THE FEDERAL Reserve may raise interest rates at a faster pace than currently expected, if the country’s recent rapid growth continues.
Minutes from the latest meeting of the US central bank’s Federal Open Market Committee (FOMC) said yesterday that “it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated” if the Fed’s goals were met earlier. There was one vote against the FOMC statement, from hawkish member Charles Plosser, who objected to the wording of the Fed’s forward guidance.
The minutes came ahead of the Jackson Hole monetary policy symposium, an annual event held by the Kansas City Fed in Wyoming, which begins today. Janet Yellen will make the Fed chair’s speech on Friday, but analysts are expecting little change in policy this week.