Federal Reserve Minutes Point To December Lift-Off

(RTTNews) - 'Most' Federal Reserve officials are open to a December interest-rate hike, the minutes of the central bank's October meeting said Wednesday.

Participants saw the downside risks arising from economic and financial developments abroad as having diminished, noting favorable economic indicators in China.

They also judged the risks to the outlook for domestic economic activity and the labor market to be nearly balanced.

Policy makers shrugged off the disappointing September retail sales report, as gains in employment and income, low gasoline prices, and a high level of consumer confidence were viewed as factors that should support consumer spending.

Some wanted to raise rates at this meeting, while most participants anticipated that these conditions for tightening could well be met by the December 15-16 meeting.

However, a few Fed voters remain unconvinced about the wisdom in raising rates this year, saying it is unlikely that the information available by the December meeting would justify such as move.

Earlier in the day, Rob Kaplan, the new president of the Dallas Fed, in his first speech said it was time to end the zero interest rate policy.