Home USD: FOMC Minutes: Shed Little Light On Fed’s Next Move – CIBC
Daily Look

USD: FOMC Minutes: Shed Little Light On Fed’s Next Move – CIBC

The FOMC released the minutes of the most recent Fed policy meeting. What were the key points of the minutes?

Here is their view, courtesy of eFXdata:

CIBC Research discusses its reaction to Wednesday’s US FOMC minutes from the September meeting.

“Given that today’s Fed minutes are from a meeting which occurred prior to the latest ebbs in fiscal stimulus negotiations,  they shed little light on the central bank’s next move. At the time of the last meeting, the minutes state that the economic outlook of many participants had assumed additional fiscal support. If stimulus turned out to be less generous or arrived later, those participants would have had a weaker outlook,” CIBC notes.

The minutes also didn’t provide much new information surrounding the implementation of the Fed’s new average inflation targeting framework, other than suggesting there was more disagreement surrounding the central bank’s conditional commitment to keep rates pinned down than was suggested in the number of dissents to the statement. The fact that the central bank didn’t discuss adding to the pace of QE or lengthening the duration of purchases, which the market seemed to be expecting even before the latest disappointments on the fiscal policy front, has seen longer-term bond yields rising,” CIBC adds.

For lots more FX trades from major banks,  sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.