The Federal Open Market Committee met on September 15 and 16. the minutes from that meeting are due Wednesday October 7
- at 1800 GMT
A quick preview via Scotia, in summary (bolding mine):
- the ... meeting ... introduced unexpected dissension in the ranks when two officials voted against the statement
- One consideration will be whether debate and opposing views were somewhat more prevalent across non-voting FOMC members.
- Markets may be sensitive toward any further indications that officials are not fully invested in an inflation overshoot. Minneapolis Fed President Kashkari for one still doesn’t sound convincing to me. There are multiple drivers of inflation risk, but the fastest rate of growth in broad money supply in at least six decades could be one avenue through which committee members may be hesitant to overcommit to relaxed inflation targets along a timeline marked by “we’re not even thinking about thinking about raising rates”
- ... monetary policy has driven broad money growth toward the 25– 30% range. If this turns out to be a transitory shock with an eventual vaccine waiting in the wings, then the monetary policy dialogue could well become more complicated particularly given evidence to date of a modest snap back in core inflation.
