FOMC minutes showed "many" saw another rate hike was warranted
FOMC minutes showed "many" saw another rate hike was warranted, while a smaller number thought action could wait. Several thought that further tightening should hinge on incoming data, though it was acknowledged that Hurricanes Harvey, Irma, and Maria would impact economic activity. There was active debate over inflation and wages. While many saw some of the softening in inflation as due to idiosyncratic factors, other factors could be at work too and there was concern that such influences could be more persistent. Also, "several expressed concern that the persistence of low rates of inflation might imply that the underlying trend was running below 2%." Also, "a few others pointed out the need to consider the lags in the response of inflation to tightening resource utilization and, thus, increasing upside risks to inflation." Concurrently, most noted the subdued nature of wages. Though there was a lot of discussion over low inflation and the various implications of that, analysts still believe the minutes are consistent with a December tightening.