FOMC Minutes to be of little interest – BMO CM

Sal Guatieri, Senior Economist at BMO Capital Markets, suggests that based on June’s press statement, the FOMC’s rate forecast and Yellen’s recent testimony we already have a clear picture of where monetary policy is headed in the near term—absolutely nowhere.

Key Quotes

“So, there is probably little further to glean from the published minutes of the last meeting. We know the Fed is concerned about slower job growth, weak business spending, ebbing inflation expectations, and potential Brexit blowback on American shores. We know the FOMC trimmed its long-term view of the fed funds rate to 3%. We know that two “hawks” abruptly shifted flight patterns, with George no longer voting to raise rates, and Bullard eying no more than a quarter-point increase in the next 2½ years.

With fed funds futures leaning slightly toward a rate cut, there is some interest in whether policymakers gave this option serious consideration in the event of Brexit, and, if so, what are the trigger points.”