Inflation target of 2% may not stop the next Fed rate freeze

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The Fed can stop raising rates before inflation reaches 2% if officials believe the economy's already heading there without another increase.September's meeting left most unconvinced, with strong spending and persistent price increases outweighing the strain expensive borrowing was putting on parts of the economy.The minutes released Oct. 7 explain the thinking behind that month's unanimous decision to raise its main interest rate to 3.75%-4%.Most participants expected another hike by year-end, but their reasons differed: many saw higher rates as insurance against inflation sticking around, while others thought the economy would need higher rates anyway.Those views can overlap, but they leave different amounts of room for persuasion. Evidence that temporary price increases are fading could reassure someone seeking insurance, while an official who thinks spending is too strong would also want to see people and businesses spending less freely.That discussion helps explain what could stop another hike, although officials didn't agree on a set of conditions that would rule it out.Cheaper gasoline won't do all the workHigher rates make borrowing more expensive and saving more attractive...

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