WASHINGTON -- U.S. central bankers say they may need to increase the key lending rate "fairly soon," but appear split on the timing amid uncertainty over President Donald Trump's tax and spending policies, the minutes of their last meeting show. The Fed officials said their outlook for the economy and interest rates had not changed much since December, when they indicated three rate hikes were likely this year, according to the minutes of the Jan. 31-Feb. 1 monetary policy meeting published Wednesday. In its first meeting since Trump took office, the policy-setting Federal Open Market Committee said it continues to expect to need only "gradual adjustments" in interest rates to hit the two percent inflation target, if the economy continues to grow at the current moderate pace. Trump has promised to deliver a major tax cut plan very soon and also pledged to implement a large infrastructure spending project. The central bankers continue to see "heightened uncertainty" about the timing and impact of those policies, and pointed to potential risks if the measures fuel inflation.

Source: The China Post February 23, 2017 16:07 UTC