USD: Balanced FOMC Minutes Reinforce Patient Fed Stance – CIBC


The Federal Reserve is sitting on its hand and does not intend to raise rates anytime soon and this was reflected in the meeting minutes. What’s next?

Here is their view, courtesy of eFXdata:

CIBC Research discusses its reaction to today’s FOMC minutes.

The minutes of the Fed’s last meeting reinforce the patient stance of policymakers but did little to justify market expectations for rate cuts. Indeed, most participants did not expect the acute economic weakness observed recently to persist beyond the first quarter, though they did concede that growth is likely to step down from last year, particularly in light of the disappointing news on global growth,” CIBC notes.

“Overall, the majority of members see rates stable for the remainder of this year, unless something forces them to alter their outlook. With regards to the balance sheet, officials suggested that they would likely reinvest the proceeds of maturing MBS securities in Treasuries to better mimic the composition of the Treasury market. The balanced nature of the minutes didn’t meet the bar for expectations of further easing heading into the release, and as result rates have sold off,” CIBC adds.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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