FOMC Minutes of the 12-13 June on 05.07.2018

  • Further hikes could take rates above neutral some time next year
  • Gradual hikes needed amidst very strong economy
  • Discussed flattening of the yield curve
  • Concern tariffs may affect investments
  • Trade policy risks have intensified and are concerning
  • A few said might want to discuss before long how to conduct monetary policy best when reserve balances fall
  • Removing forward guidance from statement doers not reflect a shift in approach to policy going forward ( that in relation to possibly removing the “accommodative stance)
  • Fed plans small-value MBS purchases to maintain readiness
  • Some businesses passing higher costs to consumers
  • Generally viewed risks to outlook as roughly balanced

The link to the minutes

USD doesn’t react much, remains a tad in demand we’ve seen the past hour into the minutes together with risk deflating a bit which may have to do with tomorrow’s tariffs hitting the calendar and also EURJPY 129.60s being a major crossroad on the trend lines right where it capped today.
The fact USDJPY isn’t following the other USD higher may find an additional explanation in the yield curve flattening further. 2-10s US are sub 30 bps

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