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Home / Business / Fed minutes show support for September interest rate was combined with anxiety about a trade

Fed minutes show support for September interest rate was combined with anxiety about a trade





Reuters

Federal Reserve Chairman Jerome Powell will speak in Jackson Hole on Friday.

Minutes of the Federal Reserve's last meeting will be released Wednesday, September Thus, deep concern that a major escalation in ongoing trade disputes could not have been made.

Many Fed officials said that "it would probably soon be appropriate to take another step in the policy." minutes said. September 1

96.

Current market odds are signaling a 96% probability of a hike rate in September and 60% chance of another in December. [19659004] At the same time, officials said they might have to break off their gradual rate if there is an escalation in international trade disputes.

Fed officials were unanimous in their view that a trade was a major downside risk to the economy.

"The trump administration as early as Thursday may be new $ 16 billion worth of Chinese $ 200 billion worth.

Trade-tracker: Here are the new levies, imposed and threatened

Given the complex nature of trade issues "a major trade escalation" ,

At the meeting, Federal officials thus agreed that they would "fairly soon" need to scrap the language as they were "accommodative" lengthy discussion about what to do if they are forced to return to zero in the next recession,

Officials said there was a "meaningful risk" rates could go back to zero during the next decade.

In the wake of the Great Recession, the Fed will start buying treasury and mortgage-related assets to get long-term rates down. This policy was controversial and the Fed acknowledged that.

Officials said their toolkit of "forward guidance" and asset purchases was "effective, but decided to keep talking about alternatives."

FedEx Chairman Jerome Powell may elaborate on this issue in his speech Friday in Jackson Hole.

Financial conditions have eased over the past month as investors think the Fed may not push into restrictive territory.

Yields on the 10-year Treasury note

                            
                            
                                  
      
      
      
      
      
      
      
                                  
                                     TMUBMUSD10Y, -0.42%

have dropped 15 base points to 2.842%. The Dow Jones Industrial Average

                            
                            
                                  
      
      
      
      
      
      
      
                                  
                                     DJIA, -0.30%

has risen 1.5% over the same period to 25,802.


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