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Some Fed officials sought early rate hike: FOMC minutes

Published on Feb 20, 2014 3:10 AM
File picture of the US Federal Reserve. -- PHOTO: AFP

WASHINGTON (AFP) - Some Federal Reserve policy makers sought an early hike in its benchmark interest rate, minutes from their January meeting showed Wednesday.

The minutes of the Federal Open Market Committee meeting of January 28-29 said “a few” members saw it appropriate to raise the Fed’s rate “relatively soon", amid rising market expectations of higher economic growth and rising rates even while inflation remains tame.

Some of those members also cited standard monetary policy rules which pointed to raising the federal funds rate, currently 0-0.25 per cent, before the middle of 2014.

It was the first sign in months of growing divisions over monetary policy within the FOMC, with a rise in the number of members pushing a quicker increase in the base rate.

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