FOMC responses - the end of the strong dollar?
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"