Further US rate hikes 'most likely' needed, Fed minutes show

The committee voted unanimously for a rate hike of 0.25% and there are signs of more increases coming in the near future.

Quarles also suggested that the Fed should pay attention to other indicators that reflect tightness and overheating in the USA economy.

Powell appears more inclined than previous Fed chairs to consider employing interest rates when faced with potential financial imbalances.

This would move USA interest rates slightly above what policymakers say is "neutral" - that is, neither slowing nor speeding the economy - but some participants said the Fed may need to go even further than that.

The minutes showed some Fed officials believed that USA interest rates will have to rise high enough to prevent economic overheating. When Yellen held the position, she took a more cautious approach in raising rates.

The Federal Reserve's most recent interest rate increase put monetary policy about where it should be, with no further hikes required in an economy where inflation remains weak, St. Louis Fed President James Bullard said on Thursday, pressing an argument he has made over the past two years.

So far this year, policymakers have already voted to hike short-term interest rates three times, and are poised to do so again in December, staying the course they laid out late last year.

They are carefully trying to keep the economy on even keel all while keeping a watchful eye on possible inflation risks that might be brought about after last year's injection of fiscal stimulus through tax cuts and a massive spending bill.

A few participants expected that policy would need to become modestly restrictive for a time.

The ascending reconciliation to the U.S. interest rates is too swift declared Trump, because inflation is very low. As other Fed governors retire, the president has the opportunity to fill more spots.

When asked if he thought the President should be weighing in on the agencies, he replied: "I don't think he should be making comments on any federal agency". Central bank officials were unified in voting last month to boost rates by a quarter point, the Fed's account of its September policy meeting shows. "We control what we do at the Fed".

They also noted that some businesses said they were investing less in the energy sector due to tariffs on steel and aluminum imports, part of an array of trade conflicts the Trump administration has pursued with trading partners.

In a dovish signal, Quarles said that his "preferred path for policy is more gradual than I think many other people's because of my optimistic assessment".

USA stock futures fell on Thursday after the Federal Reserve's minutes showed policy makers broadly agreed on the need to raise interest rates further, fanning concerns that triggered a brutal selloff last week.

  • Eleanor Harrison