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The FOMC Minutes of July meeting showed on Wednesday that members continued the review of monetary policy strategy discussing potential changes to statement of longer-run goals.

The FOMC further noted that participants agreed that refining the statement was warranted in light of “fundamental changes” in the economy over the past decade including low-interest rates and “persistent” disinflationary pressure.

Market reaction

The US Dollar Index showed no immediate reaction to the FOMC Mİnutes and was last seen gaining 0.4% on the day at 92.68.

Additional takeaways as summarized by Reuters

“Revised long-run statement of goals could make monetary policy clearer and help households and businesses make better decisions, helping fed meet its inflation and employment goals.”

“Staff assumed additional fiscal stimulus would be enacted beyond that anticipated in June but positive effect on economic outlook was outweighed by risks of increasing spread of the virus.”

“Policymakers saw a sizable rebound in consumer spending, less improvement in the business sector.”

Developing story…