Fed Officials Are Divided Over When to Reduce Its Debt Holdings<br />The minutes of the June meeting said several officials wanted to start “within a couple of months,” while others favored waiting, suggesting<br />that officials are debating whether to begin in September or wait until December.<br />By BINYAMIN APPELBAUMJULY 5, 2017<br />WASHINGTON — The Federal Reserve raised interest rates on schedule during the first half of 2017,<br />but its plans for the second half of the year are less clear, according to minutes of the Fed’s most recent meeting in June.<br />The pace of price increases has slowed in recent months, forcing the Fed to back away from its predictions<br />that this would be the year that inflation approaches the Fed’s desired 2 percent annual pace.<br />The minutes acknowledged what were described as “surprisingly low recent readings” on inflation,<br />but said most officials continued to expect a return to normal<br />Officials debated how soon to start reducing the Fed’s securities portfolio, as the sluggishness of inflation<br />and the exuberance of investors continued to concern them.<br />“We’re trying to generate paths for employment and inflation that meet our mandated objectives.”<br />The low level of inflation, on the other hand, is causing some officials to question whether the Fed is moving too quickly.
