www.varchev.com

FOMC minutes: Members agreed it would be appropriate to convey less certainty about the path of inflation

Highlights of the FOMC minutes

  • In their discussion of current conditions, participants noted that, with progress on vaccinations and strong policy support, indicators of economic activity and employment had continued to strengthen
  • Twelve-month rates of inflation abroad continued to rise, reflecting further increases in energy prices, persistent pressures from supply bottlenecks, and past exchange rate depreciation in some EMEs.
  • The staff’s common inflation expectations index, which combines information from many indicators of inflation expectations and inflation compensation, was little changed relative to the second quarter and remained at its highest level since 2014.
  • Over the intermeeting period, an increase in perceived inflation risks and an associated upward revision in the market-implied path of the federal funds rate contributed to increases in Treasury yields
  • participants remarked that demand for most consumer goods had remained strong
  • A number of participants noted that there was likely to be a drag on household spending as previous fiscal support faded
  • Many business contacts had experienced a worsening of supply chain problems
  • Participants judged that supply constraints would likely continue for longer than they had previously expected.
  • Participants anticipated better payroll numbers in the months ahead
  • Some participants highlighted the fact that price increases had become more widespread
  • Many participants pointed to considerations that might suggest that elevated inflation could prove more persistent
  • Participants generally supported the plan to implement reductions in the pace of net purchases of Treasury securities and agency MBS by $10 billion and $5 billion per month
  • Some participants preferred a somewhat faster pace of reductions
  • Various participants noted that the Committee should be prepared to adjust the pace of asset purchases and raise the target range for the federal funds rate sooner than participants currently anticipated if inflation continued to run higher than levels consistent with the Committee’s objectives

Since this meeting, the CPI and PCE inflation numbers moved higher. It’s safe to say the Fed dove Mary Daly was one of the participants who ‘generally supported’ the current taper pace but she’s already flipped towards a quicker taper.


In light of that, I don’t know if these minutes tell us all that much.


Markets are unmoved in the aftermath.


 Head of Trading Dimitar Kalapov

Comments:

Leave a Reply

Login to comment

* Rough, sarcastic and ironic language is not allowed. For such Admins Delete without notice.

Varchev Absolute Trader

борсова платформа

  • Търгувай над 3000 финансови инструмента: Crypto, Форекс, Акции, Индекси, Суровини, ETF-и
  • Използвай платформа с директно изпращане ордерите на борсите
  • Best Trading Platform - "Online Personal Wealth Awards" EU награждава Varchev Absolute Trader
  • Cloud base платформа - твоят трейдинг сетъп на всяко устройство
  • Traders Talk - чуй какво движи пазарите в реално време
  • Market Sentiment - търгувай с настроенията на инвестиционите банки
  • Top movers - най-горещите трейдове във всеки един момент
  • Stocks scanner - филтрирай най-подходящите за твоя трейдинг стил пазарни инструменти
  • Heat map - Търгувай в посоката на големите играчи


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance