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Wednesday, July 06, 2016

FOMC Minutes: Almost all Fed officials saw payrolls raising uncertainty

  • Officials generally agreed it was prudent to wait for additional data on jobs and the impact of the Brexit vote
  • Most noted Brexit vote could generate financial market turbulence that could hamper economy
  • Some noted continued uncertainty regarding outlook for China's policy
  • High debt levels in China and other emerging markets represented risks to financial system
  • In the absence of significant shocks, raising rates would be appropriate if data shows progress on jobs, growth and inflation
  • Downside risks noted: possible sharp slowdown in jobs, continued weakness in business investment and or global economic/financial shocks
  • Several policymakers suggested policy may need to remain accommodative for some time for inflation to move closer to 2% target
  • Several expressed concern that a delay in hiking would increase financial stability risks
  • Here was the full text of the June 15 FOMC statement

 These clowns get paid how much for saying "brexit creates uncertainty"?

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