FOMC Minutes: Policymakers thought a rate hike "might be"appropriate "fairly soon"

The Minutes from the January (31st & Feb1st) Federal Reserve’s monetary policy meeting have been published, highlighting that most policymakers thought a rate hike "might be"appropriate "fairly soon.

Key headlines:

  • Many saw only modest risk inflation pressures will rise significantly.
  • Many Fed policy makers with a vote on rate policy saw modest risk inflation pressures will rise significantly.
  • Many Fed policymakers judged Fed would have 'ample time' to respond if inflationary pressures emerged.
  • Fed officials with and without a vote on policy generally agreed on the need to begin discussion at upcoming meetings on how to change balance sheet reinvestment policy.
  • Fed officials with a vote on policy agreed that even with uncertainty over gov policies, near-term risks to economy roughly balanced.
  • Fed officials with and without a vote on policy saw increasing upside to the economy given the possibility of expansionary fiscal policy.
  • Among Fed officials with and without a vote on policy, several saw downside economic risks associated with the potential appreciation of the dollar.

 

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.