US Fed officials discuss possibility of faster future rate hikes

Fed meeting minutes show all policy-makers predicting a strengthening economy

A majority of Federal Reserve officials see USA trade rifts with China as a downside risk for the economy, according to minutes of their policy meeting held in March and released on Wednesday.

The readout of the meeting, at which the Fed unanimously voted to raise borrowing costs by a quarter percentage point, also showed that policy-makers were wary about the impact of the Trump administration's trade and fiscal policies.

Indeed, the government reported Wednesday that consumer prices rose 2.4 percent in March compared to a year ago, the fastest 12-month advance in a year and one of several signs that inflation has begun to rise on a sustained basis.

The minutes showed Fed officials were confident inflation would return to their 2% target, as tax cuts and increased government spending provide a boost to the economy. Many market players forecast the Fed will raise the key rate at their policy meeting in June.

Inflation, which has lagged the Fed's 2-percent target for years, has also begun to pick up in recent months, and Fed officials expect it to finally hit that goal and perhaps exceed it by next year, if not before.

Their views were laid out in the minutes of the bank's March meeting, published on Wednesday.

The meeting in March was the first led by Powell, who took over as chairman of the Fed in early February.

Mitzi Shore, Owner of The Comedy Store, Dies at 87
She refused to pay comics who performed in her club, insisting it was like a college where comedians learned their craft. She was also a loving mother, not only to her own four children, but to the myriad of comedians who adored her.

Federal Bureau of Investigation raid sought Cohen's communications with Trump campaign
Cohen has cooperated completely with all government entities", said Stephen Ryan, Cohen's Washington-based attorney. One of the sources said the warrant also referenced an investigation into wire fraud and bank fraud.

Footage appears to show Israeli soldiers cheering shooting of Palestinian
Mubarak, who has been outspoken against Israel's occupation in Palestine, said he will not be deterred. Meanwhile, the soldiers in the video were defended and praised by senori Israeli officials.

However, the meeting minutes showed that already some Fed officials anxious the central bank would have to move faster than previously expected.

However, "a number of participants" said they expect stronger growth and inflation in the next few years, suggesting the path for interest rates "would likely be slightly steeper than they had previously expected", according to the minutes.

Trade tensions with Beijing have escalated in recent weeks since Trump announced the tariffs and targeted China for additional 25 per cent punitive duties on almost US$50 billion in goods for its alleged theft of USA intellectual property. Those tensions have roiled financial markets over potential damage to global growth.

Business contacts in numerous Fed's 12 regions reported concern about the tariffs, with the agriculture sector "feeling particularly vulnerable to retaliation", the minutes said.

They include possible retaliation by other countries in response to President Donald Trump's trade policies.

Since the March meeting, Fed officials have largely adopted a wait-and-see attitude to trade policy, noting it is not yet clear if the tariffs will go into effect and their eventual size if implemented.

Related News:



Most liked

Syria conflict: Assad regime's runways in line of US fire
Russia's foreign ministry said "smart rockets" should be used against terrorists, not against the legitimate government of Syria . USA officials have been consulting with global allies on a possible joint military response to Syria's alleged poison gas attack.

Call for 'protected return' of Rohingya refugees
The military said in a statement the soldiers will serve 10 years with hard labour for "contributing and participating in murder". The journalists, Wa Lone and Kyaw Soe Oo, face a maximum penalty of 14 years in prison under the country's Official Secrets Act.

Real Madrid v Juventus - story of the match
Mario Mandzukic's first goal after 76 seconds was the fastest that Real Madrid have ever conceded in a Champions League home game. Buffon was sent off in what is probably the final Champions League appearance of his career.

Mehul Choksi gets non-bailable warrant in PNB fraud case
Modi and his jeweler uncle, Mehul Choksi, are accused of defrauding the PNB to the tune of around Rs 12,700 crore. The Enforcement Directorate (ED) is also conducting an independent probe into the scam.

Toronto, Guadalajara to meet in final — CONCACAF Champions League
Chivas won its semifinal earlier Tuesday night, playing to a 0-0 tie at the New York Red Bulls for a 1-0 aggregate victory. What then followed was relentless pressure from Club America and a series of stunning saves from Toronto keeper Alex Bono.

5 questions Mark Zuckerberg dodged on Capitol Hill
Marsha Blackburn (R-TN) had the chance to ask the Facebook CEO himself, Mark Zuckerberg , why the company targets certain content. Zuckerberg did not clearly address was whether users could sufficiently understand what they were consenting to.

Donovan Mitchell unleashes savage tweet after weird diss from Ben Simmons
Simmons picked up his 10th assist when he found Richaun Holmes for a dunk with 5 minutes, 5 seconds remaining in the quarter. But Simmons is far from the only talent on the 76ers: he joined a team with Joel Embiid , Dario Saric and JJ Reddick.

House Committee to release report on Greitens investigation Wednesday at 5
In March, a special House legislative committee launched its own investigation, a potential precursor to impeachment proceedings. Eric Greitens with a woman who testified under oath that Greitens subjected her to non-consensual sexual activity and violence.

Xander Bogaerts Placed On DL With 'Small Crack' In Ankle
Xander Bogaerts opened the season on fire, but now he'll have to sit out for more than a week due to injury. Bogaerts was sent for tests on his injured left ankle Monday, Evan Drellich of NBC Sports Boston reports.

Why, yes. It's time to give Trump some credit on Russian Federation
Republican presidential candidate Donald Trump shrugs during a campaign rally at the Treasure Island Hotel. Government bonds meanwhile made gains, with European and US yields around the 0.50 and 2.80 percent marks.

Airlines warned to stay cautious on possible Syria air strikes
Russian Federation responded by saying USA missiles should target "terrorists", not the "legitimate government" in Syria. British Prime Minister Theresa May's office confirmed she had spoken with Trump and French President Emmanuel Macron.

How Andres Iniesta Reacted To Barcelona's Shocking Champions League Exit
La Liga leaders Barca will look to bounce back from their Champions League exit when they host Valencia on Saturday. They are unbeaten in La Liga and had only previously lost once all season, to Espanyol in the Copa del Rey.

Weather Forecast- Wednesday, April 11th
Although it is not overwhelming wet, we are still going to keep an eye on radar this afternoon for a few areas of patchy drizzle. Tonight , clouds continue to increase out of the south as low pressure moves off the Carolina coast.

Better attitude powers Reed to Masters victory
In an article for Golf.com , Alan Shipnuck shares what few details are known about Reed's family situation. I did a segment Monday afternoon with a sportswriter friend who has a talk show in Chattanooga, Tennessee.

Australian Woman Jailed for Faking Cancer and Receiving Thousands in Donations
Hanna Dickenson convinced her parents and family friends that she had terminal cancer , scamming $42,0000 in the process. The court also added that Dickenson would lose her job as a property manager for Little Real Estate in Melbourne.