World Economy

Fed Officials Eye Dec. Rate Hike

Fed Officials Eye Dec. Rate HikeFed Officials Eye Dec. Rate Hike

Chocking up employment losses last month to the temporary hit of a severe hurricane season and reiterating expectations that inflation will strengthen, Federal Reserve policymakers signaled they continue to see gradual US interest-rate hikes ahead, Reuters reported. “Even though inflation is currently somewhat below our longer-run objective, I judge that it is still appropriate to continue to remove monetary policy accommodation gradually,” said New York Fed President William Dudley, whose regular meetings with Fed Chair Janet Yellen and constant contact with Wall Street banks bolster his influence among Fed policymakers. While other policymakers largely agreed, they also said they were keeping a close eye on the data, particularly on inflation. And one offered a strong rebuttal, saying the central bank risked a “policy mistake” if it continues raising rates despite inflation data that remains stalled. “If we go too far in our zeal to normalize (rates) we might push inflation expectations down further and that might hinder our ability to hit our target,” said St. Louis Fed President James Bullard.

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