US Federal Reserve Minutes from 11-12 June meeting.
- The vast majority of participants at the Fed's June meeting assessed US economic growth appeared to be gradually cooling.
- A number of participants said policy should stand ready to respond to unexpected economic weakness.
- Several specifically emphasized further demand weakening could generate a larger unemployment response than in recent past
- Several participants said if inflation were to persist at the elevated level or rise further, the funds rate might need to be raised.
- Most Fed members saw current policy stance as restrictive. Bankers noted that unemployment may rise if demand weakens.
- Participants saw modest further progress toward the committee's 2% inflation objective in recent months.
- May's CPI reading was seen by participants as providing additional evidence of progress toward the inflation goal.
- A number of participants said policy should stand ready to respond to unexpected economic weakness.
- Fed await for more data to start cutting rates and see trade tensions and geopolitics as risky for inflation path. As for now, Fed members did not expect it would be appropriate to lower borrowing costs until “additional information had emerged to give them greater confidence” that inflation was moving toward their 2% goal
- Fed members see that inflation progress was evident in smaller monthly gains in the core PCE expenditures price index and supported by May consumer price data that were released hours before the rate decision
- Some officials emphasized the need for patience in allowing high rates to continue to restrain demand, while others noted that if inflation were to remain elevated or increase further, rates “might need to be raised”
- A “number” of FOMC members said the Fed needs to stand ready to respond to unexpected weakness, and several flagged that a further drop in demand may push up unemployment rather than just reduce job openings
On the US Dollar futures (USDIDX) we can see almost lack of any reaction to published today FOMC minutes. However, we can assume that with today, weaker than expected ISM data, June FOMC minutes may be seen quite dovish.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
