Members of the Federal Open Market Committee supported the idea of including a reference to the possibility of raising rates at its December meeting in its statement, although members at that meeting wanted more information before deciding to raise rates, according to minutes from the meeting, released Wednesday.
"Members emphasized that this change was intended to convey the sense that, while no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting," according to the release.
Of course, the panel hedged by noting a hike could be derailed by “unanticipated shocks” that “adversely affect” the outlook, and the need for incoming data to supporting the belief the Fed’s dual mandate will be met “over the medium term.”
While the voters felt the wording left options open, "a couple of members" were concerned the verbiage "could be misinterpreted" as a signal that a hike was impending.
