The Federal Open Market Committee (FOMC) continues to walk on eggshells regarding the impact that fiscal and protectionist policies from the new administration could have on the trajectory of rate hikes. The minutes from the most recent FOMC meeting show the uncertainty about those policies. Most participants believe current economic conditions justify a rate hike soon, although there was clearly one participant in the room who was ready to raise rates at that meeting. This was likely President Jeffrey Lacker of the Richmond Federal Reserve Bank who is not a voting member of the FOMC this year; he has also announced his retirement. Lacker has long wanted to raise rates and is hoping to convince his colleagues of his views before he leaves.
The minutes revealed a little more confidence on the state of the economy