(MENAFN- DailyFX) Fed Minutes Talking Points:
January FOMC minutes revealed that policymakers voted unanimously to keep rates on hold Discussion around 'patience on rate hikes due to a feeling of uncertainty over how the US-China trade war and US government shutdown would impact near-term growth Read an in-depth breakdown of the most recent FOMC rate decision here Trade market-moving events like this one with our Trade the News Trading Guide.
Minutes from the Federal Open Market Committee's January meeting were released to the public Wednesday, offering insight on the central bank's recent dovish shift. Recent fundamental headwinds like the US-China trade war and the US government shutdown muddied the case for further hikes and in January, policymakers voted unanimously to keep rates at their current 2.25% to 2.50% range.
Clarification on the exact pace of future hikes was hotly anticipated. "Following the briefing, participants raised a number of questions about market reports that the Federal Reserve's balance sheet runoff and associated "quantitative tightening" had been an important factor contributing to the selloff in equity markets in the closing months of last year" the minutes highlighted.
As for the balance sheet, Fed officials stressed that the FOMC would be flexible in its approach to balance sheet normalization. The survey results also suggested the respondents anticipated the the committee would slow the balance sheet runoff in scenarios that involved a reduction in the target range for the federal funds rate.
US Dollar (DXY) Price Chart: 1-Minute Timeframe (February 20 2019) (Chart 1)
Check back for updates as the story develops…
--Written by Peter Hanks, Junior Analyst for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX
Read more: Crude Oil Price Climbs on Aramco Refinery Repair, Nigerian Cuts
DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you're looking to improve your trading approach, check out Traits of Successful Traders. And if you're looking for an introductory primer to the Forex market, check out our New to FX Guide.
DailyFX
MENAFN2002201900760000ID1098148762
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.