FOMC meeting minutes: takeaway
Here are the main comments of the minutes:
- There are no inflation risks from the continued stimulus to push unemployment lower.
- Most FOMC members saw inflation at 2.0% within the next few years (in March inflation was 1.1% staying below the 2% target for almost 2 years).
- Fed officials discussed several approaches to policy when they raise short-term interest rates, but decided further study was needed.
Full text of the minutes here
All in all, the minutes offer little insight into the future policy of the Fed. According to BK Asset Management, “while the central bank is and intends to end QE in 2014 they provided no additional hints on when rates will rise.”