Danske Bank: comments om FOMC minutes
Minutes of the 29-30 October FOMC meeting were slightly more dovish than the statement, analysts at Danske Bank say.
1) There were “a few” participants of the FOMC who did express concern that inflation could run below the Committee’s 2% target for quite some time. “Most participants” continue to expect inflation to move back to the Committee’s arget over the medium term, but the overall FOMC sentiment towards the inflation has become more dovish.
2) Second, the statement did not mention the deterioration in foreign economic and financial conditions at all nor the appreciation of the USD.It means that we need further weakness in global growth and/or financial markets before it becomes a real concern for the Fed.
3) The “considerable time” phrase was discussed. However, there is no indication that the Committee is about to change that wording in December.