The minutes of the 3 November FOMC meeting, released on Wednesday, said that various participants noted that the Fed should be prepared to adjust the pace of the QE taper and raise rates sooner than currently anticipated should inflation continue to run hot.
Additional takeaways:
\u201cSome participants suggested that reducing the pace of net asset purchases by more than $15B each month could be warranted so that the committee would be in a better position to make adjustments to the fed funds target range.\u201d
\u201cParticipants stressed that maintaining flexibility to implement appropriate policy adjustments on the basis of risk-management considerations should be a guiding principle in conducting policy in the current highly uncertain environment.\u201d
\u201cParticipants generally judged that the committee’s criterion of substantial further progress had clearly been more than met with respect to inflation.\u201d
\u201cSome participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases.\u201d
\u201cParticipants noted that beginning to scale back the pace of net asset purchases was not intended to convey any direct signal regarding adjustments to the target range for the federal funds rate.\u201d
\u201cParticipants cited upside risks to inflation, including those associated with strong demand for goods and a tight labor market.\u201d
\u201cA few participants cited a number of factors representing potential vulnerabilities to the financial system, including elevated asset valuations and the growing exposure of banks to nonbank financial firms.\u201d
\u201cOn inflation expectations, a number of participants discussed the risk that the public’s longer-term expectations of inflation might increase to a level above that consistent with the bank\u2019s 2.0% target.\u201d
\u201cParticipants generally saw the current elevated level of inflation as largely reflecting factors that were likely to be transitory.\u201d
\u201cParticipants judged that inflation pressures could take longer to subside than they had previously assessed.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The minutes of the 3 November FOMC meeting, released on Wednesday, said that various participants noted that the Fed should be prepared to adjust the pace of the QE taper and raise rates sooner than currently anticipated should inflation continue to run hot. Additional takeaways: \u201cSome participants suggested that reducing the pace of net asset …<\/p>\n","protected":false},"author":13,"featured_media":33256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,39],"tags":[6885,6868,8143,7567],"class_list":["post-55589","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-global-stock-markets","tag-fed","tag-fomc","tag-interest-rate-hikes","tag-taper"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/55589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=55589"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/55589\/revisions"}],"predecessor-version":[{"id":55595,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/55589\/revisions\/55595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/33256"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=55589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=55589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=55589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}