FOMC Minutes support the US Dollar – Two opinions

The FOMC Meeting Minutes from Jerome Powell’s first rate decision tried to keep a balanced picture but the underlying tone of optimism is clear.

Here is their view, courtesy of eFXdata:

USD: FOMC Minutes: Greater Confidence In Inflation & Growth Outlook; Modestly USD Positive – CIBC

CIBC Research discusses the reaction to today’s FOMC minutes from the March meeting.

“The Fed’s decision to hike interest rates in March was unanimous, and the minutes of the meeting also seemed to reflect a coming together of opinions. “Many” officials were said to have greater confidence regarding the outlook for inflation, which caused a “number” to say that a steeper rate path may be warranted…

The apparent greater confidence regarding the inflation and growth outlook should be modestly positive for the US$, and negative for fixed income today,” CIBC argues.

USD: FOMC Minutes: Optimistic Outlook; Our Call Remains For 3 More Hikes This Year – SEB

SEB Research discusses the reaction to today’s FOMC minutes from the March meeting.

“The March meeting minutes does not change the outlook that was provided in the statement. The Fed has a more optimistic outlook on economic activity and confidence that inflation will move towards target has grown stronger. The minutes do not discuss trade policy in any detail but a strong majority considered this to be a downside risk for the US economy.

We stick to our forecast of three additional hikes in 2018 (June, September and December)and two hikes in 2019 (March and June),” SEB argues.

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