FOMC minutes highlights Nov 19, 2014:

  • Many said Fed should remain on alert for fall in long-term market-based inflation expectations
  • Discussed “somewhat weaker” outlook in Europe, China and Japan
  • Many see limited impact of recent foreign developments on USA
  • Discussed stronger dollar
  • Considered referencing market turmoil, decided it might signal more pessimism than appropriate
  • Some participants wanted to drop ‘considerable time'; others thought it was useful
  • Discussed drop in inflation most saw slow in near-term then rising toward target
  • ‘A few’ worried inflation could be below target for ‘quite some time’
  • A number of participants thought it could “soon be helpful” to clarify approach on pace of rate hikes
  • The minutes were for the Oct 28-29 FOMC meeting
  • The FOMC next meets Dec 16-17
  • Full text of the FOMC statement
  • Highlights of the Oct 29 decision

There really isn’t anything hawkish here.

The first headline caused a knee-jerk lower in USD/JPY to 117.43 from 117.70 but it quickly rebounded with dollar buyers waiting in the wings.

Treasury yields are moving lower with 10s down to 2.33% from 2.35% and that implies some US dollar weakness.