Minutes of the meeting have been published, including details of the Fed’s previous interest rate decisions.
The Fed had decided to change interest rates at the meeting in question. All details of the published minutes are as follows:
- Participants agreed that uncertainty about the economic outlook is increasing and a careful monetary policy approach is appropriate.
- Participants agreed they were well prepared to wait to make their financial outlook more clear.
- In discussions on policy strategies, authorities emphasized the importance of inflation expectations.
- Participants said they could face “difficult trade-offs” if inflation continues and growth and employment outlook deteriorate simultaneously.
- The weakness of the dollar stems from concerns about the impact of trade policies on economic growth.
- The increase in long-term yields was due to some maturity premiums, officials said.
- Officials believe there is a risk that the labor market will weaken in the coming months.
- The risk of higher inflation and unemployment is increasing.
- Some officials said losing the safe inventory status could have long-term impact on the United States.
- When inflation is high, the benefits of flexible average inflation targeting decrease.
- Almost all authorities believe inflation could last longer than expected.
- Some participants commented on the typical changes in correlation between asset prices in the first half of April.
- The committee voted to extend the exchange line between dollars and forex.
- Persistent changes in this correlation or weakening of perceived safe inventory status of US assets could have lasting effects on the economy, participants said.
- Authorities said tariff policies have had a greater impact on economic activity than previously forecasts had predicted.
- Officials unanimously agreed to await clearer guidance on inflation and the economic outlook.
- Respondents felt that uncertainty about their economic outlook was unusually high.
*This is not investment advice.
