The Fed looks to lag behind the next rate hike to 2018

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The Federal Reserve says it can afford “patience” before the next interest rate hike and waiting for confirmation that low inflation data is transitory, according to the minutes of its last monetary policy meeting released today .

“The committee can afford to be patient under current circumstances when it comes to deciding to raise interest rates further and was against further adjustments until the information confirms that recent readings of low inflation are unlikely to persist,” he said. Document of the meeting at the end of July, on the opinion of some of the participants.

Although the Fed has already raised rates twice this year, and had targeted a third before the end of the year, members of the Federal Open Market Committee (FOMC) seem to recognize that this third price-of-money Be delayed until early 2018.

At the meeting last July, the central bank decided to keep interest rates unchanged at the current range of 1% and 1.25%.

Low inflation in recent months has generated concern among economists, especially in a context of near full employment, which according to theory should push up wages and with them the general price index (IPCE).

However, in recent months the annual rate of inflation has slowed and remains below the Fed’s annual 2% target.

At the central bank meeting led by Janet Yellen, participants in fact acknowledged that inflation is more likely to “stay below target for longer than expected.”

The Fed’s next monetary policy meeting will be held in mid-September and will feature a news conference by Yellen and the agency’s new macroeconomic forecasts. EFEUSA

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