US: FOMC meeting minutes<\/p>\n
Date:\u00a0Thursday, 9 October at 5.00am AEST<\/p>\n
At its last meeting in September, the Fed lowered the Fed Funds rate by 25 bp to a range of 4.00% – 4.25%, in line with expectations. It was the Fed\u2019s first rate cut in nine months. Newly appointed board member Stephen Miran dissented, advocating for a 50 bp cut, contrary to expectations that Governors Waller and Bowman might support a larger reduction.<\/p>\n
Fed Chair Jerome Powell\u2019s prepared remarks were more dovish than previous statements, highlighting risks to employment and signalling further cuts. However, he struck a hawkish tone during the question and answer (Q&A), describing the rate cut as \u2018risk management<\/a>\u2019 and noting rising growth projections in the Summary of Economic Projections (SEP).<\/p>\n Powell also remarked, \u2018Let\u2019s remember, though, the unemployment rate is 4.3 percent. The economy is growing at one and a half percent. So, it\u2019s not a bad economy or anything like that. We\u2019ve seen much more challenging economic times, but from a policy standpoint, what we\u2019re trying to accomplish is challenging. There are, as I mentioned earlier, no risk-free paths now. It\u2019s not incredibly obvious what to do, so we have to keep our eye on inflation.\u2019<\/p>\n The FOMC minutes are expected to reflect a cautious tone, with most members supporting the 25 bp cut as a balanced approach to managing inflation and growth risks. The minutes are likely to emphasise the committee\u2019s data-dependent stance, discussing the pace of future rate cuts and the evolving economic outlook. Investors<\/a> will focus on any dissent, particularly Miran\u2019s push for a larger cut, and the committee\u2019s inclination toward aggressive easing or a gradual approach amid inflation concerns.<\/p>\n The US interest rate market is fully priced for a 25 bp Fed cut in October with an ~88% chance of another 25 bp cut in December. Looking ahead, there is a cumulative 115 bp of rate cuts priced through the end of 2026.<\/p>\n Fed funds rate chart<\/p>\n","protected":false},"excerpt":{"rendered":"US: FOMC meeting minutes Date:\u00a0Thursday, 9 October at 5.00am AEST At its last meeting in September, the Fed…\n","protected":false},"author":2,"featured_media":17177,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[138,220,111,139,69],"class_list":["post-57606","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/57606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=57606"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/57606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/17177"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=57606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=57606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=57606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}