The decision to raise rates "was reinforced by the prospect that
the committee might not find it desirable to adjust policy at its
December meeting when a tightening action could add to the
potential financial uncertainties and unsettlement surrounding the
century date change," the members said.

. . .

At its December meeting Tuesday, the Fed decided to leave rates
unchanged, citing uncertainties about Y2K. But the Fed warned at
its last meeting for the year that inflation dangers could be lurking
in the months ahead.

Tampa Bay Online

-- spider (spider0@usa.net), December 23, 1999

Answers

My feeling back in November was that the committee *had* to raise the rate at that time because anything less was a no-confidence vote in the status of y2k remediation. OTOH, they couldn't quite afford to send that same message in December because of the backlash if the economy tanks next month.

-- Brooks (brooksbie@hotmail.com), December 23, 1999.

Fed says "inflation dangers could be lurking in the months ahead".

Bwaaaaaaaahahahahahahahahahahaha

-- Me (me@me.me), December 23, 1999.

Wait a couple of months...and see what they find!

-- Mad Monk (madmonk@hawaiian.net), December 23, 1999.