Having done nothing but rally since the FOMC statement on 10/29 that ended QE, the minutes provide little additional info aside from to note that some participants wanted to drop "considerable time":
- *MANY FED OFFICIALS SAW LIMITED IMPACT FROM GLOBAL SLOWDOWN
- *FED OFFICIALS SAW NEED TO WATCH FOR INFLATION EXPECTATIONS DROP
- *FOMC OPTED NOT TO MENTION FINANCIAL MARKET TURMOIL AFTER DEBATE
If they don't mention, it never happened!!
Pre-FOMC Mins: S&P Futs 2045, USDJPY 117.75, 10Y 2.349%, Gold $1194
A reminder of the idiocy that occurred in stocks at the last Fed Minutes...
[3]
Some of the highlights from the report. On the domestic economic outlook:
Most viewed the risks to the outlook for economic activity and the labor market as nearly balanced. However, a number of participants noted that economic growth over the medium term might be slower than they currently expected if the foreign economic or financial situation deteriorated significantly.
On the global outlook:
period. It was observed that if foreign economic or financial conditions deteriorated further, U.S. economic growth over the medium term might be slower than currently expected. However, many participants saw the effects of recent developments on the domestic economy as likely to be quite limited. These participants suggested variously that the share of external trade in the U.S. economy is relatively small, that the effects of changes in the value of the dollar on net exports are modest, that shifts in the structure of U.S. trade and production over time may have reduced the effects on U.S. trade of developments like those seen of late, or that the slowdown in external demand would likely prove to be less severe than initially feared. Several participants judged that the decline in the prices of energy and other commodities as well as lower long-term interest rates would likely provide an offset to the higher dollar and weaker foreign growth, or that the domestic recovery remained on a firm footing.
And inflation:
Inflation was continuing to run below the Committee’s longer-run objective. Market-based measures of inflation compensation declined somewhat, while survey-based measures of longer-term inflation expectations remained stable. Participants anticipated that inflation would be held down over the near term by the decline in energy prices and other factors, but would move toward the Committee’s 2 percent goal in coming years, although a few expressed concern that inflation might persist below the Committee’s objective for quite some time. Most viewed the risks to the outlook for economic activity and the labor market as nearly balanced. However, a number of participants noted that economic growth over the medium term might be slower than they currently expected if the foreign economic or financial situation deteriorated significantly
Full Statement