The FOMC Minutes, What They Mean

The FOMC Minutes, What They Mean

FLASH: The Trump Policy at Work for Americans

The Key takeaways from the FOMC Minutes from the 29-30 January meeting, as follows:

  1. There was widespread agreement for the FOMC to end shrinkage of the $4-T balance sheet by the end of the year. The timetable ends uncertainty over whether shedding assets would further tighten financial conditions.
  2. The FOMC said it is throwing out the December forecasts for 2 rate hikes this year, and instead many on the committee were unsure whether any adjustments would be needed.
  3. The committee is taking a patient approach in light of increasing downside risks, notably slowing global growth and turmoil in financial markets. Some FOMC participants were cutting their estimates for Y 2019 growth.
  4. The Fed becoming more Dovish in its view on inflation, noting the outlook had become more muted compared to last year even though the US labor market has been tightening.
  5. US stocks were up on the day, while US Treasuries finished lower after release of the mins, indicating not a big surprise from investors.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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