Breaking News
0

Fed Members Not All-In on Further Rate Cuts: Fed Minutes

Economic IndicatorsAug 21, 2019 04:02PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Federal Reserve policymakers highlighted concerns about slowing global growth and trade tensions as headwinds, but stopped short of suggesting that a series of rate cuts should follow, according to the minutes of the Federal Reserve’s July meeting released Wednesday.

"Most participants viewed a proposed quarter-point policy easing at this meeting as part of a recalibration of the stance of policy, or mid-cycle adjustment, in response to the evolution of the economic outlook over recent months," the Fed minutes showed.

The Fed suggested that the best course of action would be to remain "flexible" and monitor incoming economic data amid uncertainty over when risks weighing on the economy, including the U.S.-China trade war would be resolved.

"In their discussion of the outlook for monetary policy beyond this meeting, participants generally favored an approach in which policy would be guided by incoming information and its implications for the economic outlook and that avoided any appearance of following a preset course," according to the release of the minutes.

The Federal Reserve cut its benchmark rate by 25 basis points to a range of 2.0% to 2.25% from 2.25% to 2.5% on July 31.

At its July meeting, the Federal Reserve cited “the implications of global developments for the economic outlook as well as muted inflation pressures” as reasons for cutting rates for the first time since the 2008.

But the decision to lower rates was not unanimous, the minutes showed. Esther George and Eric Rosengren dissented largely because economic indicators suggested the economy remained somewhat robust.

The minutes drew a muted reaction in markets, with many looking to Fed Chairman Jerome Powell's speech at Jackson Hole, Wyo. on Friday for further clues on monetary policy. Some also claimed the minutes were largely a non-event as the July meeting took place before President Donald Trump proposed to slap new tariffs on China. The tariffs, however, have been pushed back to Dec. 15 from from Sept. 1.

“If (Powell) believes that risks may warrant a ‘somewhat’ lower path for policy, then a 25bp cut will be confirmed and market pricing, which currently rests above that level, will need to adjust,” Morgan Stanley said in a note.

Powell has faced relentless pressure from Trump to deliver a big rate cut.

Trump claimed earlier this week that Powell had a “horrendous lack of vision" and called on the central bank to slash rates by 100 basis points and renew “some” quantitative easing. Today he likened Powell to a golfer that can’t putt with “no touch.”

The Fed, in its July statement, pledged to end its balance sheet shrinking program at the end of the month, two months earlier than initially anticipated.

Fed Members Not All-In on Further Rate Cuts: Fed Minutes
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Andrew carson
Andrew carson Aug 22, 2019 5:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Fed rate monitor on this site says a rate cut of a quarter point to a half point is at 96.9 percent.
Leonele Michael Mabunda
Leonele Michael Mabunda Aug 22, 2019 12:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Could this move be quantitatively sound and solid enough to change the trajectory of the 2 and 10 Yr bonds?
Hank Williams
Hank Williams Aug 21, 2019 10:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I would say let the Fed take rates to zero but that wouldn't be enough and we would have to keep hearing the same old thing.
Hank Williams
Hank Williams Aug 21, 2019 10:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are now seeing the management style of a D-I-P.
Adamo Nals
Adamo Nals Aug 21, 2019 9:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Everyone who thanks we need bad cuts is out of their mind or a millennial. In this environment we actually need to raise rates because we do not have the ammo when a real recession hits. The economy is so strong it’s ridiculous to be even having this discussion. The market has priced in 150 basis point cut by December. Wait till 2600 or lower on the S&P because everyone is offsides
Rob Fordham
Rob Fordham Aug 21, 2019 9:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If they dont cut it will be a bloodbath
Bill Bob
Bill Bob Aug 21, 2019 7:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Feds meeting on Friday will move markets for sure.
Rob Fordham
Rob Fordham Aug 21, 2019 7:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lets pray it moves them up we have been stuck for 2 years
Singhpurvanshi Atish
Singhpurvanshi Atish Aug 21, 2019 6:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
trump is going to devalued dollar to 12 % anytime soon
Van Doza
Van Doza Aug 21, 2019 6:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can you rephrase that please?
Nem Roge
Nem Roge Aug 21, 2019 6:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My friends, your président may soon announce a dollar devaluation .... around 10%... It is thé only reason why french and germain bounds are rising so quickly ... and thé rush for gold is another clue..... buy quickly whatever is not valueted in américan money .... few days to act
Jan Buyle
Jan Buyle Aug 21, 2019 5:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The country is lead by a dictatorial narcist... he knows everything better than all the others... he believes... but do you believe it to? Well, don't.
Lion King
Lion King Aug 21, 2019 5:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump >> best employment record... employment >> salaries>>> spend ,open your eyes
Al Vlaj
alvlaj Aug 21, 2019 5:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Didnt you hear? He says he’s the “chosen one.” Good thing none of his base are religious else they would be offended... or arent faithful enough to about the comparison.
Tim Hotons
TradeKing Aug 21, 2019 3:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump : " I'm the chosen to destroy Americans for my own political agenda to look good because no one ever dare to create a trade war, now Powell must wipe my ****and clean up the mess I've created or it's his fault when US enters recession."
Michael Kim
Michael Kim Aug 21, 2019 3:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
World growth 4% shrinks to 2.5% because of trade war. President Trump's goal vs. Fed. chair Powell's mandate- Core CPI 2.2%.
Tim Hotons
TradeKing Aug 21, 2019 3:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump is one pushing US economy into recession creating political storms with trade war around the world, If Powell surrenders Trump will continue to make false claim it's Powell's fault while we are entering recession. Step up and kick Trump's ***Powell !
Bram Assen
Bram Assen Aug 21, 2019 3:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can someone explain why they call it a cut, while in July is went from 2 to 2.25? Seems like an increase to me instead of a cut.
Steven Ownz
Turtle_Steven Aug 21, 2019 3:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
huh... it was 2.5 - 3. it is a range...
Tech Support
Tech Support Aug 21, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
At this point Powell is the goat.
Andrew carson
Andrew carson Aug 21, 2019 2:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Meltdown awaits if the hawk shows up...
Lion King
Lion King Aug 21, 2019 2:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think its time for Trump to not speak about Fed if he cant fire him
Rodrigo Castro
Rodrigo Castro Aug 21, 2019 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell wants to destroy Trump's chances of reelection.
Show previous replies (2)
Andrew Hook
Andrew Hook Aug 21, 2019 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chris Cumminsstup@d politic and trump he is the emperor: he want to buy Greenland ******** So economy it is too complicated for him (6 times bankrupted, 1 billion losses)
Shane Hacker
Shane Hacker Aug 21, 2019 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You obviously werent paying attention then Rodrigo. The only reason Trump wants the cut is to use the numbers to brag at his rallies. We dont actually need it and thats why Powell is saying what he is saying.
Nathan Dunn
Nathan Dunn Aug 21, 2019 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think Powell just wants to do his job without being hammered by the president every day.
Jan Buyle
Jan Buyle Aug 21, 2019 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Remember who hired him... hahahaha....
Andrew Hook
Andrew Hook Aug 21, 2019 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jan BuyleThe apprentice showman lol
sat dadlani
sat dadlani Aug 21, 2019 2:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Never gonna happen murrey
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email