FOMC May 2019 meeting minutes
- patient approach appropriate for some time even if global conditions improved
- many Fed officials saw inflation to as likely transitory
- Fed discussed pros and cons of shortening bond portfolio maturity
- generally agreed a patient approach to interest-rate policy changes was warranted
- a few Fed policymakers that monetary policy might need to be tightened if economy evolves as expected
- many Fed policymakers said holding shorter duration maturities could help future maturity extension programs
- a number of Fed policymakers said a portfolio of more capacity for a maturity extension program was more desirable than a proportional portfolio with maturities similar to those of outstanding treasuries
- many Fed policymakers said recent dip in PCE inflation likely to be transitory
- discussed options for reaching the long-term portfolio composition, considered accelerated versus gradual approaches
- several of Fed worried by risk of low inflation expectations
- some say low inflation could on anchor expectations
- inflation pressures remain muted
- few note there still may be slack in the economy
- some say downside risks to growth decreased
- most say downside risks to growth remain
- some say GDP likely to moderate after strong Q1
- many of you weak inflation is transitory
- inflation or 2% still most likely outcome
- some say downside inflation risks increased
The market reaction has been somewhat muted in the Forex market.
- USDJPY has had a high of 110.31 and a low of 110.23. Tradesat 110.25
- EURUSD traded to 1.1157 currently trades at 1.1163
