The minutes from the Federal Reserve’s Jan monetary policy meeting have been published, revealing that the Committee discussed their outlook for the economy and rates, where all agreed that inflation target should be met in 2018 where some officials saw an appreciable risk of inflation lag to target. The dollar was little changed, a little weaker on the release, VIX slightly lower. Gold and stocks higher.
- Recent strengthing of the economy increased the likely hood of a rate increase.
- Inflation will rise in 2018 and stabilise in the medium term.
- A couple of officials are concerned about the outlook.
- Risk roughly balanced.
- Some officials saw an appreciable risk of inflation lag to target.
- A number of officials raised economic growth forecast based on better data.
- Tax overhaul might have larger effects as previously thought.
- Important to monitor slope of the yield curve.
- Officials are cautioning about market imbalances.
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About the FOMC minutes
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
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