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Fed officials expect economic boost from tax cuts

Federal Reserve policymakers largely agreed last month that the U.S. tax cuts would likely benefit the economy, but disagreed on whether that growth would warrant a faster pace of rate hikes this year.

Minutes of the Fed’s Dec. 12-13 meeting released Wednesday show that officials believed the tax cuts would drive consumer spending and increased business investment, though they expressed uncertainty over the extent of the boost.

The minutes indicate disagreement among Fed officials over how many times the Fed should raise its benchmark interest rate in 2018. Some felt that the projection of three rate hikes was too aggressive and would prevent inflation from returning to a 2 percent target.

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