Many policy makers were reluctant to raise interest rates for the first time in more than a decade, according to the minutes of the December 15-16 Federal Reserve meeting.
It was a “close call” for some officials, but ultimately the FOMC voted unanimously to hike interest rates from zero.
As expected, there was “significant concern about still-low readings on actual inflation and the uncertainty and risks present in the inflation outlook.”
Collapsing energy prices have kept inflation in check, but Fed members predict these effects will prove temporary.
“Nearly all participants were now reasonably confident inflation would move back to 2 percent over the medium term.”
But “some members said that their decision to raise the target range was a close call, particularly given the uncertainty about inflation dynamics.”
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