- Many members supported extending late-2014 rate guidance but agreed to defer decision to Sept meeting
- A few officials suggested replacing calendar guidance with guidance linked to economic factors
- Fed viewed risks tiled to the downside due to Europe and fiscal cliff
- A number said modest growth leaves economy vulnerable to shocks
- A couple members suggested Fed explore options like UK’s funding for lending
- Many believed new asset purchase program could boost recovery by lowering rates
- Many indicated any new program should be flexible to allow for adjustments
- Full minutes
It’s dovish but many analysts saw this coming because the economy appeared weaker at the time of the meeting. Lots of traders were positioned for this type of move so we could see some profit-taking before long.
