9 Jul 2015
FOMC unclear on rates hike – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Signe Roed-Frederiksen assessed yesterday’s FOMC minutes.
Key Quotes
“The minutes of the 15-16 June FOMC meeting confirmed the divergence that we saw in the FOMC projections and the strange disconnect between the relatively upbeat FOMC statement and Chair Yellen’s following more cautious tone at the press conference in June”.
“On the labour market, the recent improvement in both job growth and wage inflation was acknowledged, but the implications for monetary policy were less clear”.
“The minutes also touched upon the more technical issues relating to the first rate hike. At the meeting where the first rate hike is decided, the FOMC will in addition to the ordinary FOMC statement release a second more technical paper. This will explain how the Fed will reach the announced target rate and how various official rates will be adjusted in accordance”.
Key Quotes
“The minutes of the 15-16 June FOMC meeting confirmed the divergence that we saw in the FOMC projections and the strange disconnect between the relatively upbeat FOMC statement and Chair Yellen’s following more cautious tone at the press conference in June”.
“On the labour market, the recent improvement in both job growth and wage inflation was acknowledged, but the implications for monetary policy were less clear”.
“The minutes also touched upon the more technical issues relating to the first rate hike. At the meeting where the first rate hike is decided, the FOMC will in addition to the ordinary FOMC statement release a second more technical paper. This will explain how the Fed will reach the announced target rate and how various official rates will be adjusted in accordance”.