The minutes from the most recent Fed meeting point to a central bank that is leaning towards raising rates in December. Bobbi Rebell reports.
It may not be all bets on December for a rate hike, but based on the most recent Fed meeting minutes, a lot more bets are on next month. Stocks extended their gains after the policy setting group's minutes came out. They showed a solid core of central bankers backed a possible December rate hike if the economy gets better, and they decided to communicate that publicly. But Fact and Opinion Economics Bob Brusca says that's a mistake. SOUNDBITE: ROBERT BRUSCA, CHIEF ECONOMIST, FACT AND OPINION ECONOMICS (ENGLISH) SAYING: "I don't think the Fed has really lined things up the way they should have to raise rates in December. I think that they are trying to guide us too strongly. I think they should let the data talk to us more. And they are not doing that. They are really trying to guide our expectations I think this is a mistake because the Fed does not know the future. " And the minutes show a couple of policy makers worried that the unusually specific reference to December could too strongly signal the expectation of a December hike. The minutes also pointed to concerns that the longer-term growth potential of the US economy has weakened. The key number that could derail December rate hike plans - the November jobs report - will come out the first week of next month.