- Full text
- Contacts said they have largely been able to pass on price increases their customers
- A 'couple' participants wanted to end QE sooner than planned
- Participants anticipated that it would soon be appropriate to rates Fed funds rate
- Some participants noted risk of undue tightening in financial conditions
- A few noted this risk could be mitigated through clear and effective communication, including on the appropriate path of monetary policy
- A few participants noted possibility of return of structural disinflationary pressures
- A few noted asset valuations were elevated across a range of markets
- Many commented that the sales of agency MBS could be reinvested in to Treasuries
- Participants generally expected inflation to moderate over the course of the year
- Some noted that longer-term inflation expectations remained well anchored
The US dollar has modestly softened on the release of the minutes, with nothing so far suggesting that a 50 basis point hike is the preferred path forward. The implied odds of 50 bps have also come down by about 10 percentage points since early today and are now below 50%.