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Wednesday, April 06, 2016

FOMC Meeting Minutes: Next move based on data not calendar date

https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20160316.pdf
      • FOMC saw global conditions posing risks to US Outlook
      • Global economy, financial data are relevant for policy.
      • FOMC noted, weak global growth could further boost US dollar
      • MANYon FOMC saw bigger global risks warranting policy caution
      • George said postponing rate hike could undermine Feds goals
      • many on FOMC said prudent to wait before next tightening step
      • FOMC saw further strengthening of the labor market and housing.
      • Fed. saw economy expanding moderately despite global headwinds.
      • Fed. saw economy broadly in line with earlier expectations.
      • Several on FOMC saw world disinflation as downside price risk.
      • FOMC generally agreed US been resilient amid global events.
      • A couple on FOMC saw quarter-point hike as appropriate in March
      • Several on FOMC argued against April high as some favored it
      • Business investmenti seem likely to remain sluggish
      • some policymakers saw firming trend inflation. Other views increase as unlikely to be sustained
      • many noted fed had little room to ease monetary policy if economic activity or inflation weakened 
      • While two fear to gradual a tightening could result in need to raise rates quickly later

          Mixed bag, self contradictory minute

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