FOMC minutes: Policymakers expected interest rates to remain steady this year

The minutes from the Federal Reserve’s March 19-20 monetary policy meeting have been published with key highlights, via Reuters, found below.

• Majority of U.S. Federal Reserve policymakers expected interest rates to remain steady this year.
• Policymakers saw continued U.S. economic growth, strong labor market and inflation near fed's objective as most likely outcome in next few years.
• Majority of policymakers said Fed's 'patient' approach on rates needed given uncertainties, including those around global economy and financial developments.
• Some policymakers thought a modest hike in rates could be warranted later this year.
• Several policymakers preferred to stabilize average level of reserves by resuming purchases of treasuries soon after end of Fed's balance sheet runoff.
• Some policymakers said they should discuss potential benefits and costs of tools that might reduce reserves demand, support interest rate control.
• Several policymakers said the Fed's characterization of its policy as 'patient' would need to be reviewed regularly.
• Several policymakers said their view could shift on whether Fed's next move should be a hike or cut.
• A couple of policymakers said the 'patient' characterization should not be seen as limiting Fed's options.
• Several policymakers expressed concern about flat yield curve for U.S. Treasuries; noted historical relationship less reliable.
• A few policymakers said a U.S. economic deterioration might be amplified by significant debt service burdens for many firms.
• A few policymakers said uncertainty remained high over Brexit and trade but that risks of adverse outcomes had fallen.
• Fed Chairman Powell asked Committee to consider ways to improve communications via Fed's survey of economic projections.