Fed Still Ready to Hike, But Slow Inflation Remains a Worry

My working theory on the U.S. Federal Reserve is as follows. There is pretty broad consensus that a rate hike in the near term is appropriate. Economic growth seems to be accelerating a bit and labor conditions are favorable. However many on the Fed are worried about slower inflation reads lately. It could be a sign that monetary policy isn't as accomotive as they think. A few think this makes it worth waiting to hike even one more time, but most think the inflation slowdown will ultimately prove temporary. Worth watching, but more of an intermediate-term concern.

In short, today's release of the Fed's minutes from their September meeting is consistent with that view. Here are a few highlights and how I am positioned....868 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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