The minutes of the Fed gave an idea of ​​rising rates

The Fed's minutes reinforced the expectation of a rise in interest rates in December.

The minutes of the Fed meeting on the previous meeting almost confirmed that an increase in interest rates would be carried out more recently. In fact, market experts were expecting a rise in interest rates at the December meeting. This problem has already been priced.

On the other hand, it was found that there was no consensus between the Fed presidents on possible interest rate hikes in 2019.

Officials discussed the challenges of tightening financial conditions, global risks and economic downturns in some sectors that are sensitive to the impact of the economic outlook.

It was pointed out that there was no predetermined path for monetary policy and that the risks were balanced.

The minutes, most of the Fed's members of the growth of the medium-term trend will slow down, he noted.

In the minutes explaining that trade, corporate debt and low inflation risks are discussed, it was announced that members were discussing the need for a flexible approach to interests and risks to the increase related to financial incentives.

It was pointed out that members were very much in discussions about the ratio of reserves and that in the minutes it was stated that the interest rates of excess reserves might have to be changed rapidly and that the decision texts of the members should be be more data-driven.

Some members were concerned about the debt of non-financial corporations and the rise in wages was consistent with the 2% inflation target.

Although a rise in interest rates is almost certain in December after these minutes, it is hoped that Fed officials will provide more information on the trajectory of interest, which will probably indicate more clearly how they see the indicators of the US economy at the next meeting and how the interest rate will change over the next few weeks. .

Yesterday's Fed Chairman's statements, Powell & # 39; in, were close to a neutral level of interest rates.

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