US Fed anxious to ‘preserve credibility’ at next meeting

US-USA-America-Federal-Reserve-Fed-700x450.jpg

Minutes from the last meeting of the US Federal Reserve’s monetary policy committee reveal concerns it must raise rates at its next meeting to “preserve credibility”.

It comes as Wall St closes at record highs for a third day running ahead of the Thanksgiving Holiday.

“Most participants expressed a view that it could well become appropriate to raise the target range for the federal funds rate relatively soon, so long as incoming data provided some further evidence of continued progress toward the committee’s objectives,” the minutes said.

“Some participants noted that recent committee communications were consistent with an increase in the target range for the federal funds rate in the near term or argued that to preserve credibility, such an increase should occur at the next meeting.”

The meeting was held before the US election, but the minutes were only published this week.

The next meeting of the FOMC will take place on December 13-14.

Economic indicators point to an improving economy and the shock win of Donald Trump in the US presidential elections has not resulted in the financial market sell-off many were expecting.

GDP figures released in the third quarter showed the economy growing at an annualised rate of 2.9 per cent, while employment growth has averaged 178,000.