The minutes from the Fed’s November meeting showed that Fed members feel ongoing hikes to their benchmark Fed Funds Rate would be appropriate but a substantial majority support slowing the pace of hikes soon. This sets up a potential 50 basis point hike at their meeting on December 13-14, which would mark their seventh rate hike of the year, including four consecutive aggressive 75 basis point hikes at their meetings in June, July, September and November.

The Fed Funds Rate is the interest rate for overnight borrowing for banks and it is not the same as mortgage rates. When the Fed hikes the Fed Funds Rate, they are trying to slow the economy and curb inflation. The minutes also showed that many Fed members said that the effects of the rate hikes were still quite uncertain. But of note, the Consumer and Producer Price Indexes released after the Fed’s meeting showed that inflation was cooler than expected in October.