Most US Federal Reserve Members Support Rate Increase ‘Relatively Soon’

The Federal Reserve can increase the interest rate fairly soon if US economic data shows continuing improvement, according to the minutes from the Federal Open Market Committee’s (FOMC) November meeting released on Wednesday.

WASHINGTON (Sputnik) — The minutes stated that most participants expressed a view that it could 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.

Most participants in the FOMC meeting, held on November 1-2, voted to keep the US interest rate at 0.25-0.5 percent range. Federal Reserve Chair Janet Yellen also supported the decision.

However, the heads of the Federal Reserve banks in Kansas City and Cleveland, Esther George and Loretta Mester, voted against the action.

"Mses. George and Mester dissented because they preferred to increase the target range for the federal funds rate by 25 basis points at this meeting," the minutes noted.

Mester argued that the US economy has reached full employment level through monetary policy. She also suggested that inflation was approaching the Committee’s target of 2 percent.

The next FOMC meeting has been scheduled for December 13-14, according to the minutes.