Federal Reserve Meeting Minutes Show No Urgency to End Quantitative Tightening
October 9th: An institutional analysis has pointed out that some analysts hold the view that the minutes of the September meeting might suggest that Federal Reserve officials are beginning to think about ending the balance sheet tapering in a tighter financing market environment. Nevertheless, based on the meeting minutes, there is little evidence indicating that this topic was extensively discussed.
During the September meeting, the staff at the Federal Reserve Bank of New York informed the officials that by the end of the first quarter of 2026, bank reserves are projected to decline to around $2.8 trillion, which implies that there is no immediate need to end the quantitative tightening at the next one or two meetings. The officials did stress that "it is crucial to keep a close eye on the money market situation." (FXStreet)
4 hours ago
The Fed Meeting Minutes Cautiously Suggest Further Rate Cuts This Year
On October 9th: The gap among Federal Reserve officials regarding the future course of interest rates is expanding. However, the majority think that further rate cuts are needed this year. The minutes of the Fed's September meeting, which were released on Wednesday, indicated that the committee is grappling with conflicting economic signals and having difficulty reaching a consensus on whether stubborn inflation or a soft labor market is the more pressing issue.
The minutes showed that Fed officials unanimously agreed that due to the recent weak employment data, a rate cut was necessary. But there was disagreement among officials about the future path. Nevertheless, the minutes showed that "most believe that further policy easing in the remaining time of this year may be appropriate." Nevertheless, some policymakers "pointed out that from several indicators, financial conditions suggest that monetary policy is not particularly restrictive, and they believe a cautious approach is neces
4 hours ago
Federal Reserve Meeting Minutes: Participants Generally Expect Inflation to Remain at Elevated Levels in the Near Term
October 9th: In the Federal Reserve meeting minutes, it was mentioned that regarding the inflation outlook, participants generally anticipated that with appropriate monetary policy, inflation would remain at elevated levels in the near term and then gradually decrease to 2%. Several participants noted that business contacts indicated that they would gradually raise prices due to input cost pressures resulting from tariffs.
Although the impact of this year's tariff hikes on inflation remains undetermined, the majority of participants expected these effects to be fully manifested by the end of next year. Some participants believed that the labor market was not expected to be a source of inflationary pressures. (FXStreet)
4 hours ago
Fed Meeting Minutes: Some Data Did Not Show a Sharp Deterioration in the Labor Market
On October 9th, the minutes of the Federal Reserve meeting stated that when discussing the labor market, participants noticed that job growth had decelerated and the unemployment rate had increased slightly. Participants believed that the moderate pace of employment gains in recent months could be a reflection of both a decline in labor supply and the growth of labor demand.
Participants emphasized that factors such as a reduction in net immigration or changes in the labor force participation rate had weakened labor supply, while the impact of moderate economic growth or increased uncertainty on businesses' hiring decisions might be the reasons for suppressing labor demand. In this context, participants mentioned a series of other indicators that assist in assessing labor market conditions, including the unemployment rate, the job openings-to-unemployed ratio, wage growth, the proportion of the unemployed finding jobs, the quit rate of employees, and the layoff rate.
Participants gen
4 hours ago
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