Washington – Officials of the Federal Federation expect the central bank to "raise interest rates" by lifting the speculation on rising borrowing costs in December, according to yesterday's meeting.
But Fed officials are obviously divided into the next step, as some fear that the increase in the course will lead to "significant slowdowns" in the US economy, which has begun to show signs of weakness.
However, FOMC meeting minutes on November 7 and 8 showed that there is serious suspicion in the Fed reserve for a near future. Comments from board members could convince investors who gathered on Wall Street after Federal President Joseph Jerome Powell said on Wednesday that interest rates are close to "neutrality" – a rate that neither speeds nor slows down the economy. This means that interest rates should not raise much more.
But politicians in the Federal Reserve also say they will soon begin to underestimate their plans for the public, so they will closely monitor developments in the economy and not use "more incremental growth" in the future.
Despite last year's large tax cuts and fiscal incentives from Congress, the world's largest economy continues to be weak.
Witness is a steady growth in employment, while unemployment has fallen to the lowest level since 1969, even when inflation remained at 2 percent for the Fed.
Some participants said that wage growth and strong consumer confidence meant good prospects that GDP growth would remain strong before the slowdown. – (AFP)