Tightening likely appropriate soon” most Fed officials said
Other comments:
Prudent to only evidence a slowdown is transitory
Fed officials still saw gradual tightening as appropriate
FOMC expected consumer spending to rebound in coming months
Fed staff outline plan for gradual phaseout of reinvestment
Most Fed officials: inflation data reflects transitory factors
Nearly all Fed officials favorite staff proposal on rolloff caps
risks from some elevated commercial property values
a few Fed officials concern progress on inflation goal slowed
jobless rate of 4.5% at or below Fed officials long run levels
almost all Fed officials favor starting to shrink assets in 2017
deregulation could raise financial risks according to several Fed officials
Market reaction after release of minutes of meeting:
The dollar is losing some ground with the USDJPY moving to new session lows. The 200 hour MA at 111.43 is targeted. The low has extended to around 111.58.
The EURUSD has moved above the 100 hour MA at 1.1188 now. That is now risk for that pair.
The GBPUSD has rebounded back above the 200 hour MA at 1.29539.
The report perhaps has traders thinking about inflation not running away. The US debt market shows yields lower by about 1.4 bps in the 30 year and 10 year sector. The 2 year is unchanged.
The Fed is more definitive about the balance sheet taper. Does that slow Fed tightenings past June? Still too early but the dollar has move a little lower.
PS stocks are around where they have been for most of the day.