Andres Svendsen, an analyst at Nordea Markets explained that the Fed is getting more worried about trade wars even if actual projections are still little changed. Key Quotes: “Most participants noted that uncertainty and risks associated with trade policy had intensified and were concerned that such uncertainty and risks eventually could have negative effects on business sentiment and investment spending.” Regional Fed Presidents are reporting building inflationary pressures. “The generally favorable outlook for inflation was buttressed by reports from business contacts in several Districts suggesting some firming of inflationary pressures; for example, many business contacts indicated that they were experiencing rising input costs, and, in some cases, firms appeared to be passing these cost increases through to consumer prices.” Discussions about the neutral rate are intensifying and additional language change seems likely in the coming quarters. “”¦a number of them [participants]noted that it might soon be appropriate to modify the language in the post-meeting statement indicating that “the stance of monetary policy remains accommodative.” Discussions continue on the importance of the flattening of the yield curve. A wide range of reservations about the validity of an inverted yield curve as a recession pre-warning in the current environment was mentioned, but it will be watched. “A number of participants thought it would be important to continue to monitor the slope of the yield curve, given the historical regularity that an inverted yield curve has indicated an increased risk of recession in the United States.” The discussion about raising the interest rate on excess reserves (IOER) by 20 bp and thus narrowing the corridor for the effective Fed funds rate was very short, but will gain traction at the next meeting given that the effective rate has remained in the upper-end of the corridor following the June meeting despite the technical adjustment. “A few participants suggested that, before too long, the Committee might want to further discuss how it can implement monetary policy most effectively and efficiently when the quantity of reserve balances reaches a level appreciably below that seen recently.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/USD continues to flub the 0.74 barrier, further downside looking likely FX Street 4 years Andres Svendsen, an analyst at Nordea Markets explained that the Fed is getting more worried about trade wars even if actual projections are still little changed. Key Quotes: "Most participants noted that uncertainty and risks associated with trade policy had intensified and were concerned that such uncertainty and risks eventually could have negative effects on business sentiment and investment spending." Regional Fed Presidents are reporting building inflationary pressures. "The generally favorable outlook for inflation was buttressed by reports from business contacts in several Districts suggesting some firming of inflationary pressures; for example, many business contacts indicated that they were experiencing… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.