1. Hello Guest Click here to check FX Binary Point Financial Directory

FOMC minutes: Members wanted to convey that a December rate hike may be appropriate

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - Minutes of the October FOMC meeting showed that members wanted to convey that a December rate hike may be appropriate as most participants anticipated that the economic conditions “could well be met by the time of the next meeting”.

    Members emphasized that the change in last statement wording, when the Fed added a reference to the December meeting as potential liftoff date “was intended to convey the sense that, while no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting”.

    However, a couple of members expressed concern that this wording change could be misinterpreted as signaling too strongly the lift-off. Overall, "members saw the updated language as leaving policy options open for the next meeting," the minutes said.

    Still members differed in their assessment of the likelihood that incoming information will warrant a rate hike in December, but they agreed that, in making the decision, they will evaluate a wide range of data.

    The Fed decided to leave rates at record lows in October as almost all members agreed it was appropriate to wait for additional information to clarify whether the recent deceleration in the pace of progress in the labor market was transitory or reflected more persistent factors.

    It’s worth noting, this meeting happened before the impressive nonfarm payrolls report was published, which showed the economy added 271,000 jobs in October versus 180,000 expected.
    For more information, read our latest forex news.

Share This Page