Fed Minutes Show Several Officials Nod to Rate-Hike Scenario

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Federal Reserve officials signaled renewed worries over inflation with “several” policymakers suggesting the central bank may need to raise interest rates if inflation stays above their goal.
“Several participants indicated that they would have supported a two-sided description of the committee’s future interest-rate decisions, reflecting the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels,” a record of the central bank’s January meeting showed.
Minutes of the Federal Open Market Committee’s Jan. 27-28 meeting released Wednesday also revealed that a “vast majority of participants judged that downside risks to employment had moderated in recent months while the risk of more persistent inflation remained.”

The FOMC voted 10-2 at the meeting to hold the benchmark federal funds rate in a range of 3.5%-3.75%. Governors Christopher Waller and Stephen Miran dissented in favor of a quarter-point reduction. Officials dropped language pointing to increased downside risks to employment that had appeared in the three previous statements.
The minutes further signaled that one group of policymakers was embracing a view less open to additional rate cuts, at least in the near term.
Today's show features:

• Michael McKee, Bloomberg TV and Radio International Economics & Policy Correspondent, on the latest FOMC minutes
• Mike Wilson, Chief US Equity Strategist and Chief Investment Officer for Morgan Stanley, and Bloomberg News Equities Reporter Alexandra Semenova
• Kamini Lane, President and CEO of Coldwell Banker Realty, on latest US Housing data
• Bloomberg News Senior Technology Reporter Kurt Wagner on the Social Media Addiction trial

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