Fed Minutes to shed light on Fed rate outlook amid doubts over another cut
The Minutes of the United States (US) Federal Reserve’s (Fed) October 28-29 monetary policy meeting will be published on Wednesday at 19:00 GMT. The US central bank decided to cut the policy rate by 25 basis points (bps) to the range of 3.75%-4% at that meeting, but Fed Governor Stephen Miran voted in favor of lowering the fed funds rate by 50 bps, while Kansas Fed President Jeff Schmid preferred no change.
Jerome Powell and company opted to reduce the policy rate in October
The Federal Open Market Committee (FOMC) decided to cut the interest rate by 25 bps in October, as widely anticipated. In the policy statement, the Fed acknowledged that job gains slowed and the unemployment rate edged up, but reiterated that inflation remained “somewhat elevated.” Additionally, the Fed announced that it will conclude the reduction of its aggregate securities holdings on December 1.
In the post-meeting press conference, Fed Chairman Jerome Powell noted that one more 25-bps rate cut in December “is not a foregone conclusion,” and added there were strongly differing opinions among policymakers on what the next step could be.
TD Securities analysts expect the FOMC Minutes to reveal the extent of the internal debate that led to a hawkish cut in October. “Since the meeting, the hawks have gained the upper-hand in public remarks amid a lack of official data releases. The end-of-QT October announcement will also get airtime in the minutes, as we expect reserve management purchases to be announced at the January FOMC,” they said.
Source : Fxstreet.com
