Investors will be watching the release on Tuesday of the Federal Reserve’s minutes from its November meeting because they should offer insight into the deliberations officials have had about whether the US central bank should raise interest rates again this year.
The Fed at its meeting in November chose to continue to hold interest rates at a range of 5.25-5.5 per cent after last increasing them in July. This was the second meeting in a row at which the Federal Open Market Committee opted to not raise interest rates, as officials watch inflation data for signs that monetary policy is sufficiently tight.
Chair Jay Powell said in his press conference after the meeting that good economic data — such as recent evidence of strength in the labour market and robust consumer spending — may mean the Fed will have to act further to meet its 2 per cent inflation target. But since then, the US reported that headline inflation rose less than expected in October to 3.2 per cent. Tuesday’s data was also lower than the 3.7 per cent rise in September and the first decline in four months.