The Federal Reserve is uniting behind a plan to swiftly raise its key interest rate to roughly 4.5% and then hold it there, with the option of going much higher if rising inflation does not show signs of abating.
The goal, which is broadly shared by the 19 policymakers of the US central bank, suggests they are on track to implement a fourth consecutive 75-basis-point rate increase next month.
The effect of OPEC oil production cutbacks on energy prices as well as a solid September jobs report support the argument, which may be strengthened further by new inflation data on October 13.
Traditionally one of the more dovish members of the central bank, Chicago Federal Reserve Bank President Charles Evans stated to business leaders on October 6 that "we look to me, according to our reports, headed for 4.5% to 4.75% by sometime next year."
The Fed currently wants to keep its benchmark rate between 3% and 3.25%.
Despite the fact that the Fed's policy is responsive to data, officials have made it clear that it would take a lot to diverge from their target rate of 4.5%