FOMC minutes: Central bank on track to deliver rate hikes – Danske Bank
|Analysts at Danske Bank note that the FOMC minutes revealed a central bank on track to deliver rate hikes until the 'neutral' 3% is reached (probably in June 2019 after hikes in both December-18 and March-19).
Key Quotes
“After that, monetary policy will be more 'stop and go' depending on how the economy and markets are doing, but 'a substantial majority' expect policy to turn contractionary. There were no discussions about the target for the balance sheet (i.e. when QT ends) or the future monetary policy framework (although a couple of FOMC members thought it would be good ' to hold a periodic and systematic review of' the monetary policy framework).”
“The minutes showed that 'almost all' considered it appropriate to remove the phrase stating policy ' remains accommodative', because the removal would not signal a policy change while waiting would give a false sense of the certainty as to the actual level of the neutral rate. Finally, the minutes did not give any indications that the board had been influenced by the recent critique from President Trump.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.