Fed minutes could be a bigger event than usual
Oct 8 (Reuters) -While often a non-market mover, the upcoming FOMC minutes could deviate from the norm given the surprise decision by officials to cut rates by 50bps.
Though the decision itself was dovish, the dot plots and the dissent by Michelle Bowman highlighted that the details were much less dovish than the headline announcement suggested. The September dots showed that most officials believe that one or two more 25bp rate cuts this year will most likely be appropriate, which is now the market view since the release of the latest payrolls report.
It's worth remembering that the meeting minutes offer an insight into the breadth of views on the committee. This contrasts with the Fed’s policy statement, which represents the consensus view. Thus, the minutes may lean more hawkish, further keeping the dollar underpinned versus its major counterparts, particularly against the euro.
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Fed dot plot cuts https://tmsnrt.rs/3XYiAeV
(Justin McQueen is a Reuters market analyst. The views expressed are his own.)
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