Minutes from the Federal Reserve’s October meeting revealed that many officials believe the conditions for a rate increase could be met by the next meeting in December. The central bank has held its benchmark interest rate near zero since the 2008 financial crisis.

The Fed’s decision will depend on incoming economic data, including employment figures and inflation readings. Officials stated they need to be reasonably confident that inflation will rise back to the Fed’s 2% target over the medium term.

Several factors support the case for a rate hike:

• The unemployment rate has fallen to 5%, a level considered by many to be near full employment.
• Economic growth has been moderate but steady.
• Financial market conditions have stabilized after a period of volatility.

However, some policymakers remain cautious, citing concerns about:

• Low inflation, which has remained stubbornly below the Fed’s target.
• The potential impact of a stronger dollar on U.S. exports.
• Global economic weakness.

If the Fed raises rates in December, it would be the first increase in nearly a decade. The move would likely be gradual, with further rate hikes dependent on the economy’s performance.

The minutes also indicated that the Fed is prepared to adjust its plans if the economic outlook changes. Officials emphasized that monetary policy is not on a pre-set course.