WASHINGTON–Close–but still not enough to warrant action.
That was the mood among the Federal Reserve’s policymaking committee when it met in mid-September and opted, ultimately, not to raise short-term interest rates.
The subject has been one of great speculation within credit unions as regulators have been urging CUs to plan for rising rates for more than a year, with multiple (incorrect) predictions that the Fed would raise rates at its “next” meeting.
Just-released minutes from its September meeting reveal that the FOMC believes that the economy is close to warranting an interest rate hike, but worries about a global economic slowdown led it to delay making a move.
While the global slowdown has not "materially altered" the outlook for the economy, the Fed added, "Nevertheless, in part because of the risks to the outlook for economic activity and inflation, the committee decided that it was prudent to wait for additional information.”
The minutes show that most members of the committee still believe it will be appropriate to increase rates “by the end of the year.”
The Fed’s goals continue to be maximum employment and 2% inflation.”
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