The Federal Reserve Open Market Committee saw economic activity “picking up as anticipated” when it met on Nov. 3-4, according to minutes from the meeting released yesterday.
Weak labor conditions and a limited threat of inflation were “likely to warrant exceptionally low rates for an extended period,” the minutes said.
With labor market conditions “somewhat weaker than anticipated, earlier declines in wealth still weighing on household balance sheets, and measures of consumer sentiment relatively low, the staff did not take much signal from the recent unexpected strength in spending and output,” according to the minutes.