Fed focused on sunny side, downplayed global woes in October | Reuters.
(Reuters) – The U.S. Federal Reserve wrestled with whether to nod to financial market volatility and a weakening globaleconomy in its policy statement last month, but opted not to out of worry it could send an unwarranted signal of pessimism.
Minutes of the U.S. central bank’s Oct. 28-29 meeting released on Wednesday also indicated a vigorous debate among policymakers over how much weight to give to signs that inflation expectations were slipping, potentially undermining their effort to bring the pace of price increases back up to their target.
“Many participants observed that the committee should remain attentive to evidence of a possible down shift in longer-term inflation expectations,” the minutes said. “Some of them noted that if such an outcome occurred, it would be even more worrisome if growth faltered.”
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