**MNI: 5 Things We Learned From The FOMC Minutes>

By Kevin Kastner

     WASHINGTON (MNI) - The following are the key points from the FOMC 

minutes release of the December 12-13 meeting released by the 

Federal Reserve Wednesday:

     - FOMC Minutes show little new information, given that the rate 

hike was not a surprise and was supported by "almost all" participants, 

but one tidbit was a belief that the then-proposed tax hikes could lift 

PCE, business investment, and possibly labor supply. 

     - The minutes show divergent view of some participants, with "a 

few" seeing a slower rate hike pace than implied by the SEP, which 

suggested three rate hikes for 2018, while another "few" saw a faster 

pace of hiking. 

     - The debate hinges on inflation, where there is still disagreement 

on whether the pace of price growth can reach 2% with further rate 

hikes. Some say no, but others continue to see inflation growth along 

the "gradual" pace of tightening that is assumed.

     - Participants agreed that the recent flatness of the yield curve 

"was not unusual by historical standards" but several said it would 

important to monitor going forward.

     - A few participants suggested further study into alternative 

monetary policy frameworks such as price-level targeting and nominal GDP 

targeting. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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