2018.02.2200:24:00UTC+00Fed Minutes Show Policymakers’ Optimistic Outlook for Economy

The Federal Reserve's rate-setting committee showed increasing confidence in the necessity to keep hiking interest rates at its most recent policy meeting, with the majority of the FOMC believing that inflation would gain momentum.

The more optimistic outlook for inflation in the recordings of the January 30-31 meeting published on Wednesday will most likely strengthen expectations that the new Fed chairman Jerome Powell will lead the FOMC in lifting interest rates next month.

In the minutes of the January meeting, Janet Yellen's last as chair, the Fed officials agreed that the strengthening in the near-term economic outlook increased the possibility that a gradual upward trajectory of the federal funds rate would be appropriate.

It also noted that recent data on inflation were taken into consideration by voting members along with prospects for a continued solid rate of economic activity which gave support fo the view that inflation would likely gather steam in 2018.

The U.S. dollar jumped against a basket of currencies following a brief decline after the release of the minutes. U.S. stocks were almost unchanged on the day while the yield on the 30-year Treasury bond hit its highest level since July 2015.