Breaking: FOMC Minutes showed most officials judged further rate cuts would be appropriate
Source Fxstreet
The Federal Open Market Committee (FOMC) released the Minutes of the December meeting, and the document showed that most participants are willing to deliver additional rate cuts if inflation declines over time. The document showed that economic growth is projected to move modestly faster than at the October meeting.
Key Quotes
- Most participants judged further rate cuts would likely be appropriate if inflation declined over time as expected.
- Some of those who supported cutting rates indicated the decision was finely balanced, or they could have supported leaving rates unchanged.
- Most participants supported lowering the Fed funds rate, though some preferred leaving rates unchanged.
- Some participants suggested that under their economic outlooks, it would likely be appropriate to leave rates unchanged for some time after a December cut.
- Participants judged reserve balances had declined to ample levels, assessed it appropriate to begin reserve management purchases of Treasury securities.
- Several participants pointed to the risk of higher inflation becoming entrenched, suggesting further rate cuts could be misinterpreted as a lack of commitment to 2% target.
- Most participants noted moving toward a more neutral policy stance would help forestall possible job market deterioration.
- Policymakers emphasized the importance of communicating that Treasury purchases are solely to ensure rate control and have no monetary policy implications."
Market reaction to the FOMC Minutes
The US Dollar (USD) gained some upward traction with the headlines. The US Dollar Index (DXY is currently up to the 98.20 area, but remains close to its recent multi-month low of 97.91.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.18% | 0.30% | 0.25% | -0.01% | -0.07% | 0.15% | 0.24% | |
| EUR | -0.18% | 0.12% | 0.06% | -0.20% | -0.26% | -0.03% | 0.06% | |
| GBP | -0.30% | -0.12% | -0.04% | -0.31% | -0.37% | -0.15% | -0.08% | |
| JPY | -0.25% | -0.06% | 0.04% | -0.27% | -0.31% | -0.10% | 0.03% | |
| CAD | 0.01% | 0.20% | 0.31% | 0.27% | -0.04% | 0.20% | 0.25% | |
| AUD | 0.07% | 0.26% | 0.37% | 0.31% | 0.04% | 0.22% | 0.30% | |
| NZD | -0.15% | 0.03% | 0.15% | 0.10% | -0.20% | -0.22% | 0.07% | |
| CHF | -0.24% | -0.06% | 0.08% | -0.03% | -0.25% | -0.30% | -0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Bitcoin Dips Below $88K Amid Low Trading Volumes and Waning Institutional Demand
Bitcoin fell to $87,458, down 2.5% as it struggled to maintain momentum above $90,000. Diminished institutional demand and holiday-thinned trading conditions have led to increased caution among investors ahead of key Federal Reserve meeting minutes.
Bitcoin fell to $87,458, down 2.5% as it struggled to maintain momentum above $90,000. Diminished institutional demand and holiday-thinned trading conditions have led to increased caution among investors ahead of key Federal Reserve meeting minutes.
Gold and Silver Reach Record Highs Amid Tensions and Weakening DollarGold and silver prices soared to unprecedented levels on Friday as investors flocked to safe-haven assets in response to escalating geopolitical tensions and a declining U.S. dollar, with forecasts predicting continued strength into the new year.
Gold and silver prices soared to unprecedented levels on Friday as investors flocked to safe-haven assets in response to escalating geopolitical tensions and a declining U.S. dollar, with forecasts predicting continued strength into the new year.
XRP ETF Assets Top $1.25 Billion as Price Stalls in Key Trading RangeXRP exchange-traded funds (ETFs) have reached a significant milestone, with total net assets surpassing $1.25 billion, even as the token’s price remains confined to a narrow range—highlighting a growing divergence between steady institutional accumulation and muted spot market momentum.
XRP exchange-traded funds (ETFs) have reached a significant milestone, with total net assets surpassing $1.25 billion, even as the token’s price remains confined to a narrow range—highlighting a growing divergence between steady institutional accumulation and muted spot market momentum.
NVIDIA has announced its plan to acquire Groq, an AI chip designer, for $20 billion. This strategic move aims to enhance NVIDIA's position in the evolving AI hardware market.
Bitcoin Faces Worst Fourth Quarter Since 2018 as Market Fatigue PersistsBitcoin's recent push back toward the $90,000 mark has provided the cryptocurrency market with a short-term lift, but few analysts view the move as a meaningful turning point following one of the weakest second halves in recent years.
Bitcoin's recent push back toward the $90,000 mark has provided the cryptocurrency market with a short-term lift, but few analysts view the move as a meaningful turning point following one of the weakest second halves in recent years.
Related Instrument
