Fed minutes said participants stressed that incoming data will be central to policy reviews. Many warned that if inflation does not continue to fall, further policy tightening may be needed; some said current financial conditions may be insufficient to bring inflation to 2%. Several participants noted financial conditions tightened over the past two meetings, partly reflecting strong growth and market pricing of more tightening. A minority who favored raising the federal funds rate target at thi

Fed minutes said participants stressed that incoming data will be central to policy reviews. Many warned that if inflation does not continue to fall, further policy tightening may be needed; some said current financial conditions may be insufficient to bring inflation to 2%. Several participants noted financial conditions tightened over the past two meetings, partly reflecting strong growth and market pricing of more tightening. A minority who favored raising the federal funds rate target at this meeting argued a near-term hike could reduce the risk of larger, costlier tightening later.