It was a unanimous vote to hold rates unchanged at the last FOMC meeting but debate over inflation was lively. The hawks, citing the risk of wage push in a full employment economy, warned that the low rate of inflation could prove transitory and that a rate hike in the near term would be appropriate. But the doves warned that the weak rate of inflation could further lower inflation expectations and make the attainment of the Fed's 2 percent inflation goal more difficult. They argued that a rate hike should be deferred until inflation actually begins to pick up.
Members at the meeting, held on October 31 and November 1, agreed to keep rates unchanged and confirmed that future hikes would be dependent on the strength of economic data. And the data since the meeting, led by the October employment and industrial production reports, have been very strong and point squarely at this year's third rate hike, at the December FOMC.