The Federal Open Market Committee has released the very demanding monetary policy meeting minutes from the June monetary policy meeting which are very demanding.
Markets have almost fully priced in another 75 basis point rate hike in July with which the minutes align. Investors are paying close attention to the discussions surrounding the September rate decision.
- They see a rise of 50 or 75 basis points as likely at the next meeting in July.
- An even more restrictive policy is possible over time.
- The Fed’s George was the only official not to support 75 basis points in June.
- Many” participants considered that there is a “significant risk” that high inflation will consolidate if the public questions the Fed’s decision.
- Participants “agreed” that high inflation justifies “tight” interest rates, with the possibility of a “tighter stance” if inflation persists.
- The Fed expects inflation to stay above 2% for some time.
The US dollar is little changed after the minutes, trading at 107.00 and up 0.48% on the day.
(5 minute chart, DXY)
About the Minutes
FOMC stands for The Federal Open Market Committee, which holds 8 meetings a year and reviews economic and financial conditions, determines the appropriate monetary policy stance, and assesses risks to its long-term goals. price stability and sustainable economic growth. The FOMC Minutes are published by the Board of Governors of the Federal Reserve and constitute a clear guide to future interest rate policy in the United States.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
