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According to analysts at TD Securities, the latest FOMC minutes echoed recent Fedspeak signalling that policy is on hold until there is a “material reassessment of the outlook.”

Key Quotes

“Risks are still viewed as tilted to the downside, however: “Nevertheless, global developments, related to both persistent uncertainty regarding international trade and weakness in economic growth abroad, continued to pose some risks to the outlook.” The minutes also raised the possibility of a small (possibly 5bp) upward adjustment to the IOER and ON RRP rates for technical reasons; the effective funds rate has been trading below the mid-point of the target range.”

“The Fed also highlighted the possibility of buying Treasury coupons in the event of bill scarcity and gradually transitioning away from active repo operations as bill purchases permanently increase reserves.”