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Despite conflicting data and opinions aired by panel members in September, NAFCU Vice President of Research and Chief Economist Curt Long said that based on a strong labor market and growing GDP, the Federal Open Market Committee (FOMC) will likely move forward with a rate hike in December.

"The FOMC minutes reflect the key dilemma facing the committee ahead of a potential rate hike in December – that the two sides of the Fed's dual mandate are moving in opposite directions," Long said. "The performance of the labor market warrants a rate increase, but modest inflation readings would point toward greater accommodation.

"But while some committee members argued for more evidence of strengthening inflation prior to the next move, those considerations will be made more difficult by the impact of Hurricanes Harvey, Irma and Maria," Long continued. "Given that the data will be relatively unreliable over the coming months, it remains most likely that the Fed will proceed with a quarter-point rate hike in December."

During last month's meeting, some committee members were concerned low inflation readings might be persistent rather than transitory but, overall, the FOMC felt confident a federal rate hike yet this year would be warranted. FOMC members noted the necessity to closely monitor economic and inflation developments in the coming weeks.

The FOMC last raised the federal funds target rate to a range of 1 to 1.25 percent in June. The FOMC will meet again Oct. 31 and Nov. 1.