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Fed Officials' Consensus on Policy Frays

FOMC minutes highlight uneasiness about weak readings on inflation.

The Federal Reserve’s consensus about when to shrink its balance sheet and how to approach policy strategy in a time of low inflation is starting to fragment.

Fed officials continued to view gradual interest-rate increases as appropriate while starting the process of unwinding the central bank’s $4.5 trillion balance sheet this year, minutes from their June 13-14 meeting released on Wednesday showed. But their debate highlighted divisions over the timing of the roll-off and unease at recent weak readings on inflation.

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