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FOMC minutes: what's new?

The minutes from the June 17-18 FOMC meeting, released on Wednesday, showed the US officials agreed to end the Fed's bond-buying program by October. The Fed’s officials also discussed strategies for exiting a period of low rates, with 13 of the 16 members indicating they expect to start seeing a higher federal funds rate next year. However, the US dollar weakened as with no indication of the rate hikes timing, the minutes make Fed continue to look dovish.

According to the regulator, it wants to see the US consumer prices increase and the labor market tighten before shifting the monetary policy to normal. Inflation and unemployment will be seen as the primary indicators for measuring the pace of economic recovery. The Fed promised to let the markets know their rate raising plans in advance.

According to Barclays Capital economists, the pace of economic recovery will be more rapid then the Fed expects. First rate hike will likely come in June 2015. Strategists expect the Fed to outline the rate increase timing on a press-conference following the September meeting. 

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