Note, this is not the four-letter word summary of the Federal Open Market Committee minutes
Nope, this is what jumped out at me from Westpac's morning note:
- transitory .... caveat ruffled markets
Pretty much nails it IMO. But, a bit more detail (bolding mine):
- The FOMC minutes indicated a hike could be seen "soon."
- However, "members generally judged it would be prudent" to wait to ensure the first quarter's slowdown was temporary before tightening further.
- The minutes did indicate that the slowdown was probably transitory, participants generally agreeing that the medium term outlook on the economy was little changed.
- The minutes also included an outline of a plan regarding balance sheet reduction, introducing a gradually increasing reduction cap, which almost all policymakers supported.
- A June hike still seems to be on the table, but the outlook beyond is slightly more uncertain given the potential for balance sheet shrinkage to start in late 2017.