FOMC minutes were released at 7:00 pm GMT today. Document related to the December 12-13, 2023 meeting, when the Federal Reserve left interest rate unchanged and issued updated macroeconomic projections, including dot-plot pointing to three 25 basis point rate cuts in 2024.
Minutes from December meeting offered no major surprises. It was noted that almost all participants saw lower rate levels at end-2024, but there was a word of caution included that rates may be kept at current levels for longer than is currently anticipated. Key takeaways from FOMC minutes:
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app- Staff economic outlook was broadly similar to the projection prepared for previous meeting
- Participants observed progress on inflation had been uneven across components, noted core services prices still rising at elevated pace
- A few participants suggested FOMC could face a trade-off between dual mandate goals in the period ahead
- Those participants pointed to downside risks to the economy associated with an overly restrictive stance
- A number of participants highlighted uncertainty around how long restrictive policy would need to be maintained
- FOMC members generally viewed addition of the word any to comments on possible additional firming as relaying their judgment that rates were likely at or near peak of cycle
- Several participants suggested it would be appropriate to begin discussing technical factors about slowing balance sheet run-off well before such a decision was reached
- Participants generally reaffirmed it would be appropriate for policy to remain restrictive until inflation was clearly moving down sustainably
- Participants generally stressed importance of maintaining a careful and data dependent approach
- In projections almost all participants indicated their base-line implied a lower federal funds rate would be appropriate by the end of 2024
- Several participants observed that circumstances might warrant keeping policy rate at current level longer than they currently anticipate
- Participants noted however outlooks were associated with unusually elevated uncertainty
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
