Federal Reserve officials struggled in September to come to terms with persistently low inflation but decided to continue to signal the possibility of raising interest rates for a third time this year. Investors, though, have settled around the notion that a December rate hike is all but guaranteed. But with undesirably low inflation persisting, she and other officials have recently acknowledged that perhaps something more long-lasting may be happening. Still, another group of Fed officials continued to express concerns that inflation could rebound very quickly, given low unemployment. This group also worried that the low Fed rates could also result in bubbles in asset prices such as stocks, leading to financial instability.

Source: ABC News October 11, 2017 18:09 UTC