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According to the minutes from the Federal Reserve’s June 18-19 monetary policy meeting, a couple of participants  favored a cut in the target range at the meeting. “Judging that a prolonged period with inflation running below 2 percent warranted a more accommodative policy response to firmly center inflation and inflation expectations around the Committee’s symmetric 2 percent objective,” the publication read.

Nevertheless, the market reaction  to the FOMC statement was relatively muted following the heavy selloff the USD met earlier today during Chairman Powell’s testimony before the Congress. As of writing,    the US Dollar Index was down 0.45% on the day at 97.06. Below are some key takeaways from the press release.

“Several participants noted that a near-term cut in the target range for the federal funds rate could help cushion the effects of possible future adverse shocks to the economy.”

“Some participants suggested that although they now judged that the appropriate path of the federal funds rate would follow a flatter trajectory than they had previously assumed, there was not yet a strong case for a rate cut from current levels.”

“Members noted that decisions regarding near-term adjustments of the stance of monetary policy would appropriately remain dependent on the implications of incoming information for the economic outlook.”

“Trade-related developments reportedly led many market participants to take a more pessimistic view of the U.S. economic outlook.”