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Respondents to open market desk surveys discussed in April meeting saw almost no probability to the FOMC implementing negative policy rate, the FOMC Minutes showed on Wednesday.

Market reaction

The US Dollar Index paid little to no mind to this headline and was last seen losing 0.44% on the day at 99.14.

Additional takeaways

“Participants agreed that recent actions taken by the federal reserve were essential in helping reduce downside risks to the economic outlook.”

“A few participants noted that higher levels of government indebtedness could put downward pressure on growth in aggregate potential output.”

“Participants were concerned that banks could come under greater stress, particularly if adverse scenarios for the spread of the pandemic and economic activity were realized, and so this sector should be monitored carefully.”

“Upcoming financial stress tests for banks were seen as important for measuring the ability of large banks to withstand future downside scenarios.”

“All participants judged that it would be appropriate to maintain the target range for the federal funds rate at 0 to 0.25%.”

“The Committee is prepared to adjust its asset purchase plans as appropriate to support smooth functioning in the markets for these securities.”