Minutes reveal the Fed raised rates in December even as some policy makers remained concerned about inflation. Bobbi Rebell reports.
The inflation debate continued in December, even as the Fed raised interest rates by a quarter point. The differing views on the path of inflation were revealed in the monetary policy making committee's minutes from the December meeting. Reuters' Dan Burns. (SOUNDBITE) DAN BURNS, EDITOR, AMERICAS ECONOMICS AND MARKETS, REUTERS (ENGLISH) SAYING: "So, it appears that that Janet Yellen mustered the entire committee to back her in raising rates for the first time in the decade, but there clearly was some doubt among some members whether this was the right time to proceed. The minutes indicate that some of the members of the committee viewed it as a close call to raise rates, and they're most concerned about the outlook for inflation." Inflation has been below the Fed's two percent target for most of the last three years. And the minutes show, some FOMC members worried that it could get stuck there if the Fed raises rates too much too quickly. But the key word seemed to be "gradual", as in a gradual path of future rate increases, because it represents a compromise between those who thought the economy was ready for a rate hike for months, and those who worried it is still at risk from both inflation and slow global growth. Fed policymakers generally expect four quarter-point rate hikes in 2016.