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FOMC minutes: dovish tone

According to minutes of the Fed’s September 16-17 policy meeting released on Wednesday, US FOMC officials have become more concerned about weak global growth and the impact of a strengthening US dollar on the domestic economy.

Officials are worried that disappointing growth in Europe, Japan and China could dampen the US exports. Meantime, the stronger dollar, by reducing the cost of imported goods and services, could hold US inflation below the Fed’s 2% objective. Fed's officials have also reduced their projection for medium-term growth partly because of these concerns.

The expressed worries added reasons for the Fed to hold low interest rates, even as the economy improves.

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