FOMC May meeting minutes: Patient approach appropriate to policy for some time

FOMC May 2019 meeting minutes

patient approach appropriate for some time even if global conditions improved
many Fed officials saw inflation to as likely transitory
Fed discussed pros and cons of shortening bond portfolio maturity
generally agreed a patient approach to interest-rate policy changes was warranted
a few Fed policymakers that monetary policy might need to be tightened if economy evolves as expected
many Fed policymakers said holding shorter duration maturities could help future maturity extension programs
a number of Fed policymakers said a portfolio of more capacity for a maturity extension program was more desirable than a proportional portfolio with maturities similar to those of outstanding treasuries
many Fed policymakers said recent dip in PCE inflation likely to be transitory
discussed options for reaching the long-term portfolio composition, considered accelerated versus gradual approaches
several of Fed worried by risk of low inflation expectations
some say low inflation could on anchor expectations
inflation pressures remain muted
few note there still may be slack in the economy
some say downside risks to growth decreased
most say downside risks to growth remain
some say GDP likely to moderate after strong Q1
many of you weak inflation is transitory
inflation or 2% still most likely outcome
some say downside inflation risks increased

The market reaction has been somewhat muted in the Forex market.

The major stock indiceshave moved marginally lower.