The officials agreed that “some further gradual increases” in the benchmark funds rate would be appropriate. What that would translate to in practical terms, though, became less clear for a central bank that only a few months earlier was pointing to four hikes in 2019.
The minutes noted that the low-inflationary backdrop means the Fed can “afford to be patient about further policy firming.”
“The statement after the December meeting replaced the phrase “the Committee expects that further gradual increases” would be appropriate, to “judges that some further gradual increases” are coming. Using “judges,” the minutes noted, was a signal to markets of the data-dependency the Fed will employ. Also, “some” was meant to imply a “relatively limited amount” of hikes would be coming.”
“The minutes noted that “a number” of members believe the Fed should assess how those risks “that had become more pronounced in recent months might unfold” and how they would impact economic activity. Also, these officials called for a look into how the impact the Fed’s actions were having as they are “still working their way through the economy.””
Viser at noen der er våkne i hvert fall!
Har ikke tatt med alt, men det jeg mener var viktigst.