Highlights from the minutes of the December 13, 2017 FOMC meeting
- Several Fed officials concerned by low inflation expectations
- Failure of inflation to rise to 2% a reason to slow hikes
- Faster inflation from tax cut among reasons to speed up hikes
- Majority of officials still expect inflation to rise to 2%
- Many saw tight labor inflation gradually lifting inflation
- A couple of officials concerned by financial stability risks
- A few officials suggested studying price-level and GDP targeting
- Generally saw medium-term inflation outlook as little changed
- Generally agreed flatness of yield curve not unusual
- Business contacts reported 'strong pre-holiday sales'
- Full text
There isn't much to get excited about here. There are dovish and hawkish arguments but we've heard them all before. On net, another 'gradual' hike in March is still the most-likely path forward, at least until Powell tips his hat.
