The latest minutes had more hawkish undertones than the market was expecting.
"Participants at the meeting assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%."
"Various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate."
Various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate.
Participants at the meeting assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%.
Many participants commented on their uncertainty about the degree of policy restrictiveness.
A couple of participants said it would be useful to begin discussions of appropriate longer-run maturity composition of the Fed's portfolio.
Almost all participants supported the decision to begin to slow the pace of decline of the central bank's securities holdings; a few could have supported a continuation of the current pace.
Participants remarked that the future policy path would depend on incoming data, the evolving outlook, and the balance of risks.
Fed staff's economic projection was similar to march outlook, but noted that deteriorating household financial positions, especially for lower-income households, might prove to be bigger drag on activity than anticipated.
US short-term interest-rate futures are down after the FOMC minutes. Traders still betting on a September start to Fed rate cuts.
Though it largely repeated rhetoric used by FOMC officials after the latest policy meeting, US stocks still weakened while the dollar and Government bond yields strengthened
It is unlikely to make a material difference to the long term outlook for US policy, as is reflected by little change in US interest rate futures.
The Hawkish undertones can be justified given the lack of the April CPI data before the minutes were recorded.
"Participants at the meeting assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%."
"Various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate."
Various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate.
Participants at the meeting assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%.
Many participants commented on their uncertainty about the degree of policy restrictiveness.
A couple of participants said it would be useful to begin discussions of appropriate longer-run maturity composition of the Fed's portfolio.
Almost all participants supported the decision to begin to slow the pace of decline of the central bank's securities holdings; a few could have supported a continuation of the current pace.
Participants remarked that the future policy path would depend on incoming data, the evolving outlook, and the balance of risks.
Fed staff's economic projection was similar to march outlook, but noted that deteriorating household financial positions, especially for lower-income households, might prove to be bigger drag on activity than anticipated.
US short-term interest-rate futures are down after the FOMC minutes. Traders still betting on a September start to Fed rate cuts.
Though it largely repeated rhetoric used by FOMC officials after the latest policy meeting, US stocks still weakened while the dollar and Government bond yields strengthened
It is unlikely to make a material difference to the long term outlook for US policy, as is reflected by little change in US interest rate futures.
The Hawkish undertones can be justified given the lack of the April CPI data before the minutes were recorded.