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Byline: KIRK SHINKLE
After 18 months of rising interest rates, the Federal Reserve is offering clear signs that the end is near.
Minutes from the Federal Open Markets Committee's Dec. 13 meeting, where policymakers upped the fed funds rate a quarter-point to 4.25%, show officials drawing a line in the sand for the fate of long-running rate hikes that began in June 2004.
"Some further measured policy firming is likely in coming months," said the minutes, but the number of additional moves needed "probably would not be large."
The Fed played coy at naming the timing of a halt. "Views differed on how much further tightening might be required," said the minutes, which were released Tuesday. "Members thought that the policy outlook was becoming considerably less certain."
Policymakers also said "concerns about near-term inflation pressures had eased somewhat" while Fed staff predicted slower but solid growth in 2006.
Central bankers added that past rate hikes are still impacting the economy and that they "need to be mindful of the lags."