Federal Reserve policymakers expressed concern about low inflation as well as threats to the US economy posed by a stronger dollar and developments in China, but deemed conditions for a rate rise to be “approaching”, according to minutes released on Wednesday.
The minutes of the July 28-29 meeting of the Federal Open Market Committee include no mention of any plans to raise rates at their next meeting September 16-17. They point to a vigorous debate within the Fed over a number of key data points including inflation and the timing of an increase.
But the minutes also offer a view of a Fed that is clearly approaching decision time on raising rates for the first time in almost a decade with much of the bank’s internal discussions focused on how best to communicate the eventual move to markets.