Fed Officials Discuss Inflation and Rate Hikes, Stocks React

Minutes from the Federal Reserve's November meeting revealed that officials are considering the possibility of raising interest rates again to combat inflation, but they are in no rush to do so. The minutes indicated that further tightening of monetary policy would be appropriate if progress towards the committee's inflation objective was insufficient. However, officials plan to assess incoming data in the coming months to determine the extent of the disinflation process. Wall Street expects an extended pause in rate hikes, and investors believe there is little chance of a rate increase at the Fed's final meeting of the year in December. The upcoming quarterly economic forecasts and remarks from Fed Chair Jerome H. Powell will provide important clues about the future direction of interest rates.