FOMC responses - the end of the strong dollar?

Author: Eamonn Sheridan | Category: Central Banks

FOMC minutes of the December meeting post is here from earlier: FOMC Minutes: Many officials felt Fed could be patient on further hikes

Bank responses are coming through, here's a couple In summary).   

  • minutes reinforce the 'big picture' that the USD will weaken this year
  • USD has been over valued
  • US economy growth signals weaken
  • a dovish Fed
  • China stimulus, trade friction, minutes indicate a pivot to reflation globally in 2019, which is also dollar bearish 
  • underscored the recent more dovish messaging from officials
  • heightened alertness to global risks and market volatility
  • preparedness to adopt a more flexible and patient stance on policy
  • further gradual increases were likely, but "the extent and timing of future policy firming less clear than earlier"

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