fomc minutes
A meeting of the Federal Open Market Committee was held in the offices of the Board of Governors of the Federal Reserve System in Washington, D.C., on Tuesday, August 5, 2008 at 8:30 a.m. [1]
The term “monetary policy” refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. [2]
If the FOMC is cautious about the inflationary outlook for the economy (characterized as “Hawkish”), then the market has a higher likelihood of future rate increases. [3]
The Manager of the System Open Market Account reported on recent developments in foreign exchange markets. [4]
For example if the minutes state that high energy costs and a rapidly expanding housing market are fueling inflation, then markets participants will tend to monitor these key sectors closely in order to gauge the likelihood of a rate increases in the future. [...] The detailed minutes from these meetings give some of the best insight into the monetary policy decision making process and what the FED thinks about economic developments inside and outside of the US. [3]
Headline consumer inflation measures, pulled down by declines in consumer energy prices, moderated in August and September. [4]
Attended portion of the meeting relating to the discussion of approaches to stabilizing money markets. [5]
The information reviewed at the August meeting indicated that the economy expanded at a moderate pace in the second quarter, but recent financial market developments highlighted some of the stresses that the economy faced going forward. [1]
Market participants tend to read into the overall mood the Federal Reserve gives during the meeting. [3]
Core consumer price inflation remained relatively stable, while headline inflation was elevated as a result of large increases in food and energy prices. [1]
The Federal Open Market Committee (FOMC) consists of twelve members–the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis. [2]
Because minutes come out three weeks after the FOMC meets, markets will discount some information in the report. [3]
The ratio of wealth to income likely declined again in the second quarter, as equity prices declined, on balance, and house prices continued to fall. [1]
Given the recent intensification and broadening of the global financial crisis, FOMC participants viewed the outlook for economic growth and employment as having worsened significantly since June. [4]
Sources:
[1] (FED) Minutes of Federal Open Market Committee, August 5, 2008 - Forex …
[2] FRB: Federal Open Market Committee
[3] Minutes of FOMC Meeting - United States
[4] Federal Open Market Committee Minutes - October 29, 2008 | EconoIndicators
[5] FRB: FOMC Minutes–September 18, 2007