Market Weekly: Aug 14-Aug-18-2017

#11202
TradersCom
Keymaster

[quote=”CautiousInvestor” post=929][size=5][b][color=purple]Some of high points of FED minutes, as Janet & company are mostly comfortable at this point:

(1) Not worried about record stock market valuations
(2) patient on interest rates (gradual as needed)
(3) inflation continues to be slow
(4) September may start some of unwinding of balance sheets[/color][/b][/size]

http://www.marketwatch.com/story/some-fed-members-say-bank-can-be-patient-on-interest-rates-due-to-low-inflation-2017-08-16%5B/quote%5D

FOMC Minutes Show Fed Inflation Confusion

Written by TradersCom
Category: Central Banks
Published: 16 August 2017

The FOMC minutes from the last meeting underscore just how confused the majority of the Fed is about what inflation is not higher. Most Fed officials also support a balance sheet move at the next FOMC meeting.

The US dollar sold off across the board with the concerns about inflation again putting into question expected rate rises by the Fed.

Inflation Minute Highlights
Several said inflation risk could be to the downside
Many saw sub 2% inflation for longer than expected
Official saw inflation pick up over next couple of years.
Many Fed officials saw weak inflation due to idiosyncratic factors
Some officials concerned by weak inflation, argue for patience
Fed split on assessment if inflation expectations well anchored

https://traderscommunity.com/index.php/central-banks/141-fomc-minutes-show-fed-inflation-confusion