FOMC minutes from Sept 25-26 meeting show that..>

FED: FOMC minutes from Sept 25-26 meeting show that participants 

"generally agreed" that gradual increases in the funds rate would be 

consistent with expected econ and inflation expansion, with a few noting 

that policy would need to "become modestly restrictive for a time" and a 

number of others suggesting it would be necessary to raise the funds 

rate above the longer-term estimate to reduce the risk of a sustained 

inflation overshoot.

- A couple of participants were not in favor of a restrictive policy 

unless there were signs of overheating economic conditions or rising 

inflation.

- "Almost all" participants agreed it was appropriate to remove 

"accommodative," indicating the removal would not suggest a change in 

the expected path of policy as the current fed funds rate remains below 

the long-term estimate. 

- They noted that waiting until the FFR is higher to alter the statement 

would "convey a false sense of precision in light of the considerable 

uncertainty surrounding all estimates of the neutral federal funds rate." 

They noted that estimates of the neutral rate are only one of many 

factors they take into account when making decisions.