Investors will get a peek behind the curtain Wednesday at a Federal Reserve suddenly divided and closer to an interest rate hike than it has been all year.
September's Federal Open Market Committee meeting featured something not often seen since Janet Yellen took over as chair: honest-to-goodness dissent. Three of the FOMC's 10 voting members opposed the final statement, which noted that central bank officials still felt it prudent to keep its interest rate target anchored at 0.25 percent to 0.5 percent. The three dissenters — Esther George, Loretta Mester and Eric Rosengren — wanted to hike rates a quarter point.
When the committee releases the summary of discussions from that meeting, it will give the market a better gauge of just where Fed sentiment stands and what the landscape will look like going forward. Current projections are for two rate hikes in 2017, but that could change.
"The fact that we had three dissenting members as well as commentary from those who have not dissented that they are not opposed to interest rate (increases) suggests that there is a very good chance that interest rates are going to go up this year," said Michael Yoshikami, founder and CEO of Destination Wealth Management. "There's a very good chance they go up in December, barring some disastrous jobs report."
Fed meeting minutes only occasionally move markets, but the September release might give the market a jolt, considering growing divergence of opinion.