The November FOMC minutes broadly conform to our previous understanding of how things stood -- i.e., some part of the committee would prefer to normalize policy more quickly:
• On the labor market, on-the-ground contacts noted difficulties in attracting workers, and ‘some’ participants noted a number of signs that the labor market is ‘very tight.’ ‘Several’ suggested that participation rates would be lower than in the past, while several others cited temporary factors restraining participation
• The perceived timeline for supply bottlenecks to clear up was extended, and by extension it could take longer for inflation pressures to ebb than previously thought. While most seemed to retain the transitory view, uncertainty clearly increased. ‘Many’ pointed to factors that could make inflation more persistent. ‘A number’ cited the risk that expectations could become elevated
• On the taper, ‘some’ preferred a faster pace of reduction in asset purchases, and ‘various’ members cited a possible need to taper and raise rates more quickly than previously expected, should inflation threaten to persist above target. ‘A number’ stressed patience, however
• On the labor market, on-the-ground contacts noted difficulties in attracting workers, and ‘some’ participants noted a number of signs that the labor market is ‘very tight.’ ‘Several’ suggested that participation rates would be lower than in the past, while several others cited temporary factors restraining participation
• The perceived timeline for supply bottlenecks to clear up was extended, and by extension it could take longer for inflation pressures to ebb than previously thought. While most seemed to retain the transitory view, uncertainty clearly increased. ‘Many’ pointed to factors that could make inflation more persistent. ‘A number’ cited the risk that expectations could become elevated
• On the taper, ‘some’ preferred a faster pace of reduction in asset purchases, and ‘various’ members cited a possible need to taper and raise rates more quickly than previously expected, should inflation threaten to persist above target. ‘A number’ stressed patience, however