Fed Officials: Stronger Economy Boosts Chance For Rate Hikes
WASHINGTON (AP) — Federal Reserve officials at their January meeting believed that improving global economic prospects and the effects of recently passed tax cuts had raised the prospect for solid economic growth and for continued interest rate increases in 2018.
The minutes of the Fed's Jan. 30-31 discussions showed that the officials were more optimistic about the economy than they had been in December. They noted a stronger U.S. and global economy and rising expectations that the tax cuts passed in December would boost growth.
The minutes said that "a majority of participants noted that a stronger outlook for economic growth raised the likelihood that further gradual policy firming would be appropriate."
The Fed did not raise rates at the January meeting, which occurred before the February stock market plunge and turbulence.
-By Martin Crutsinger, AP Economics Writer