Minutes from the Fed's most recent meeting showed most members felt the U.S. economy was strong enough for a rate increase, but decided to wait on concerns about a slowing global economy. Bobbi Rebell reports.
Central bank policy makers thought the economy was close to warranting an interest rate hike but hit the pause button. The minutes from the September Federal Reserve's policy makers meeting showed they worried about global developments, slowing growth in China as well as other emerging markets and low wages. Moody's Analytics Chief Economist John Lonski: SOUNDBITE: JOHN LONSKI, CHIEF ECONOMIST, MOODY'S ANALYTICS (ENGLISH) SAYING: "The Fed is going to keep its eye on what is going on overseas. It definitely wants to see a steadying, and improvement." Some committee members said it was a close call whether to raise rates, and the minutes showed most of them thought it would be appropriate to raise rates by the end of the year. But after the minutes were released, U.S. futures suggested traders expect the first U.S. Fed rate hike in March of 2016 at the earliest. The minutes also showed there was talk about the path of rate hikes beyond liftoff. Most members expect gradual increases after the first rate hike.