WASHINGTON — Federal Reserve policymakers were split at their last meeting over how to respond to a slowing global economy, with two officials supporting a rate increase in March even as an opposing group felt that even raising rates in April would be too soon.
Minutes of the Fed’s March 15-16 meeting, released Wednesday, showed that several participants argued for “proceeding cautiously” with future rate hikes because of global risks such as weaker growth in China. This group said that even raising rates in April “would signal a sense of urgency they did not think appropriate.”
That view stood in contrast with two officials who said they could support a March rate hike and expressed concerns that waiting too long could force the Fed to move more quickly in the future, risking economic instability.
The Fed voted 9-1 to leave its key rate unchanged. Fed Chair Janet Yellen last week signaled concerns about raising rates too quickly given headwinds facing the U.S. economy. Most economists forecast no rate hike in April.
The sole dissenting vote came from Esther George, president of the Fed’s Kansas City regional bank.
