Highlights of the main FOMC Minutes:
- Many participants felt it unlikely the economy could show enough improvement to warrant an interest rate hike at June meeting
- Fed officials saw early slowdown as largely temporary, but acknowledged increased uncertainty about the outlook
- Officials expressed concern about overseas risks including financial problems in Greece
- Officials actively debated whether 'disappointing' data, including weak consumer spending, were termporary or evidence of a longer-lasting slowdown
- Some officials worried about elevated volatility and whether US central bank's rate lift-off would ignite a rise in long-term rates similar to the taper tantrum
- Full text of the FOMC minutes
The initial reaction was US dollar weakness but it quickly reversed. We already knew that a June rate hike wasn't coming so I'm not sure we've learned anything.
Fischer tomorrow and Yellen on Friday are far-larger events than this.
