Federal Reserve to Release September Meeting Minutes

The Federal Reserve System will release minutes from its September meeting on Wednesday, providing details on the decision to raise the federal-funds rate by 25 basis points. The central bank is under scrutiny as market analysts seek to identify the specific metrics used to measure financial conditions and the intended pace for returning inflation to a 2% target.

Federal Reserve Chairman Kevin Warsh previously indicated that he would be "hard-pressed to describe broad financial conditions as restrictive." He characterized the September hike as only a "dose" of accommodation removal and suggested that further rate increases may be necessary to curb inflation.

Current economic data shows headline PCE inflation at 3.4%. This leaves the real fed-funds rate significantly lower than it was during comparable inflation periods in 2006, supporting the argument that current monetary policy remains relatively accommodative.