The minutes from the Federal Open Market Committee's latest meeting show a somewhat divided panel, with some voters seeing the need for a rate increase soon, while others want more evidence that inflation will rise.
Overall, the panel agreed that it would be "prudent" to wait for more data before making a move.
FOMC members saw strength in the labor market and "moderate" expansion of the economy. While household spending grew, business fixed investment was "soft." Inflation remained low, as did "market-based measures of inflation compensation" while there was little change in longer-term inflation expectations.
"With respect to the economic outlook and its implications for monetary policy, members continued to expect that, with gradual adjustments in the stance of monetary policy, economic activity would expand at a moderate pace and labor market indicators would strengthen," according to the minutes.
Less uncertainty was seen from the labor market and the Brexit vote.
Deciding to leave the federal funds rate target unchanged at 1/4 to 1/2 percent, FOMC "[m]embers generally agreed that, before taking another step in removing monetary accommodation, it was prudent to accumulate more data in order to gauge the underlying momentum in the labor market and economic activity. A couple of members preferred also to wait for more evidence that inflation would rise to 2 percent on a sustained basis. Some other members anticipated that economic conditions would soon warrant taking another step in removing policy accommodation. One member preferred to raise the target range for the federal funds rate at the current meeting, citing the easing of financial conditions since the U.K. referendum, the return to trend economic growth, solid job growth, and inflation moving toward 2 percent."
