2 key takeaways from the FOMC minutes
Federal Reserve Minutes are here, and some responses:
FOMC minutes signalled some caution in the pace of rate hikes. While there were no major revelations, a couple of takeaways were notable.
- First, there was a strong hint of a rate hike at the 13 June meeting: " it would likely soon be appropriate for the Committee to take another step in removing policy accommodation".
- Second, there seems to be a lack of any urgency to tighten more aggressively: "modestly above 2 percent would be consistent with the committee's symmetric inflation objective and could be helpful in anchoring longer-run inflation expectations"; "many" saw only "muted" wage pressure; and "few" noted neutral will be in sight "before too long", which will require rewording the guidance that policy is accommodative.