Fed officials see smaller rate hikes coming 'soon,' minutes show

Majority of Fed favors slowing pace of tightening soon

Federal Reserve officials earlier this month agreed that smaller interest rate increases should happen soon as they evaluate the impact policy is having on the economy, meeting minutes released Wednesday indicated.

Reflecting statements that multiple officials have made over the past several weeks, the meeting summary pointed to small rate hikes coming. Markets widely expect the rate-setting Federal Open Market Committee to step down to a 0.5 percentage point increase in December, following four straight 0.75 percentage point hikes.

Though hinting that smaller moves were ahead, officials said they still see little signs of inflation abating. However, some committee members expressed concern about risks to the financial system should the Fed continue to press forward at the same…

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