The Federal Reserve sees economic growth in the next few years but stopped short of predicting economic boom in a news conference last December, according to a New York Times report.
Here are five key notes:
1. If economic growth accelerates in the coming years, the Fed plans to raise interest rates more quickly, according to the report. Chairwoman Janet L. Yellen predicted the Fed would raise its rates three times this year.
2. The Fed increased its benchmark rate during the meeting in December, only the second time since 2008 the agency has done so, citing decreased unemployment and an expanding economy. The rate is now 0.5 percent to 0.75 percent.
3. Fiscal stimulus such as the tax cuts President-elect Donald Trump touts, or a spending increase may spark the economy to grow at an "unsustainable pace," according to the report, which would lead to increased inflation. If inflation occurred, the Fed would likely offset these policies with higher interest rates.
4. The meeting participants also discussed concerns, such as how restrictions on immigration and foreign trade changes under Mr. Trump's administration could impact growth. Businesses also reported a lack of qualified workers.
5. The national unemployment rate was 4.6 percent in November, according to the report, and the low rate may stymie any positive impact of a fiscal stimulus in the coming months.