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21 May 2015
FOMC minutes: A more modest tone - ANZ
FXStreet (Bali) - As reported by the Research Team at ANZ, the tone of the Minutes reflected a more modest appraisal of economic activity evident in the April FOMC statement.
Key Quotes
"The tone of the Minutes echoed the more sober assessment of economic activity evident in the April FOMC statement and the March meeting when the Committee’s GDP forecasts were downgraded."
"The Minutes noted the recent weakness in US data in early Q2 had not pointed to a vigorous rebound. That makes June a (virtual) non-starter for the beginning of rate normalisation. Markets were virtually unchanged on the publication of the Minutes."
"On timing, the Minutes noted that “a few [members] anticipated that the information that would accrue by the time of the June meeting would likely indicate sufficient improvement in the economic outlook to lead the Committee to judge that its conditions for beginning policy firming had been met."
"Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, although they generally did not rule out this possibility”."
"The risks to the economic outlook were seen as evenly balanced as the USD continues to exert a drag on activity, Q1 weakness may extend a little longer, but growth will recover to a moderate pace."
Key Quotes
"The tone of the Minutes echoed the more sober assessment of economic activity evident in the April FOMC statement and the March meeting when the Committee’s GDP forecasts were downgraded."
"The Minutes noted the recent weakness in US data in early Q2 had not pointed to a vigorous rebound. That makes June a (virtual) non-starter for the beginning of rate normalisation. Markets were virtually unchanged on the publication of the Minutes."
"On timing, the Minutes noted that “a few [members] anticipated that the information that would accrue by the time of the June meeting would likely indicate sufficient improvement in the economic outlook to lead the Committee to judge that its conditions for beginning policy firming had been met."
"Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, although they generally did not rule out this possibility”."
"The risks to the economic outlook were seen as evenly balanced as the USD continues to exert a drag on activity, Q1 weakness may extend a little longer, but growth will recover to a moderate pace."