FOMC Minutes Meeting of March 20-21, 2018 on 11.04.2018

  • ALMOST ALL AGREED ON GRADUAL APPROACH AS APPROPRIATE
  • All members expect inflation to rise in the coming 12 months
  • Several participants expressed the judgment that it would likely become appropriate at some point for the Committee to set the federal funds rate above its longer-run normal value for a time
  • Participants did not see the steel and aluminium tariffs, by themselves, as likely to have a significant effect on the national economic outlook, but a strong majority of participants viewed the prospect of retaliatory trade actions by other countries, as well as other issues and uncertainties associated with trade policies, as downside risks for the U.S. economy
  • Many Policymakers Said They Were More Confident Inflation Would Rise To Target In Coming Months And Stabilise Around That Level
  • Policymakers Generally Saw Economic Effects Of Fiscal Policy Changes As Uncertain Due To Dearth Of Historical Precedents
  • Several Fed Policymakers Said Fed Funds Rate In Future Will Likely Need To Be Above Its Longer-Run Normal Value For A Time
  • Here’s the link to the minutes

USD ticks up on the hawkish confirmation. EURUSD 1.2355, USDJPY 107.00, cable 1.4170

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