According to analysts at Deutsche Bank, the FOMC minutes last night broadly met expectations as they did not move markets and supported the existing policy path of raising rates steadily.
Key Quotes
“The discussion of the economic outlook was slightly more balanced than previously, as downside risks from trade, housing, and emerging markets have intensified somewhat. FOMC members seem to broadly agree that another interest rate hike will be warranted soon paving the way for a September hike (Bloomberg implied odds at 92%).”
“The committee debated some other potentially relevant topics – e.g. the yield curve, balance sheet policy, the counter-cyclical buffer, and slow wage growth – but the minutes did not reveal any consensus conclusions. These topics are nevertheless likely to resurface later this year.”
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