Here are the highlights from December 17-18 FOMC policy meeting
- Fed members indicated that it would be appropriate to slow the pace of monetary policy easing. Central bankers indicated that if data came in about as expected, it would be appropriate to continue to move gradually toward a more neutral policy stance
- A number of Fed members indicated they had incorporated placeholder assumptions regarding potential trade and immigration policy changes into their projections
- Vast majority of participants saw it as appropriate to lower target range by 25 bps at the December meeting.
- Some participants said there was merit in keeping rates unchanged at that meeting, citing higher risk of persistently elevated inflation.
- Fed Staff projected slightly lower GDP growth and a bit higher unemployment rate than the previous baseline forecast after incorporating recent data and placeholder assumptions of potential policy changes from the incoming administration.
- Participants anticipated that labour market conditions would remain solid; expected inflation to keep moving toward 2%, but effects of potential trade and immigration policy changes suggested that process could take longer than previously anticipated.
- A number of participants indicated they had incorporated placeholder assumptions regarding potential trade and immigration policy changes into their projections.
The reaction on Nasdaq100 (US100) is not very significant, however first reaction wasn't positive. On the other hand, this move wasn't very strong, so we can assume December minutes as a potentially 'bullish' non-event with not any significant surprise for markets.
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Source: xStation5
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