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
Federal Reserve Meeting Minutes: Nearly All Committee Members Agreed to a 25 Basis Point Rate Cut
October 9th. The minutes of the Federal Reserve meeting stated that all participants unanimously held the view that recent indicators suggest a slowdown in economic activity during the first half of this year. In order to reflect the latest labor market conditions, they agreed to no longer describe the labor market situation as "robust" but rather to characterize it as having seen a slowdown in employment growth and a slight upward movement in the unemployment rate while still remaining at a low level.
All participants unanimously agreed that inflation remains somewhat elevated and also agreed to add that inflation has increased to a certain extent. They further agreed that the Committee should focus on the risks to its "dual mandate" and added that the downside risks to employment have grown, reflecting their concerns about the labor market.
To support the Committee's goals and taking into account the changes in the risk balance, almost all members were in favor of lowering the fede
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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