Many Federal Reserve officials are concerned that inflation will remain lower for longer, according to minutes of the policy meeting they held in September.
…”Many participants expressed concern that the low inflation readings this year might reflect not only transitory factors, but also the influence of developments that could prove more persistent,” the minutes said. Some members debated that more secular factors like the influence of technology on lowering prices may suppress inflation below the Fed’s 2% target for longer.
This may warrant more patience in raising interest rates, the Fed officials said. They were split on whether to hike for a third time this year, likely to be considered in December.