As reported by Bloomberg, the FOMC’s words on Thursday echoed Fed chair Jerome Powell’s statements from earlier in the week as the US Federal Reserve prepares to make its rate hike path more adjustable to accommodate for fluctuating US economic data.
Key quotes
Federal Reserve officials signaled they’re adopting a more flexible approach in their gradual interest-rate increases after a likely December hike, as they try to sustain a U.S. expansion that may become the longest on record next year.
“Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon,” assuming the economy performs in line or stronger than their expectations, the central bank said in the minutes of its Nov. 7-8 session released in Washington Thursday.
The minutes flagged the possibility that the Fed will make another adjustment to maintain control of the policy rate, by adjusting the separate interest rate on excess reserves, or IOER, which is currently set at 5 basis points below the upper bound of the federal funds target range.
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