Fed’s rate hike likely next year

Several FOMC members raised nonstandard reasons for rate hike in December. Analysts suspect pushing the hike into 2016 may increase uncertainty in financial markets.

Members are also seemed to differ over the possibility of inflation level returning to the target level of 2%, and they assume the performance of labor market is not sustainable. They believe that the PCE inflation will remain below 2% through the end of 2016.

The ongoing global financial and economic developments also drew FOMC's attention. Most of the participants argue the downside risks arising from abroad seem to ease economy is secure now.

"We believe that divisions within the committee and the soft path of inflation we expect early next year will lead to a lower policy path in 2016 than the committee expects; we forecast it will hike only three times in 2016", say Barclays.