FED MINUTES:
Participants expressed increased confidence that inflation is moving towards the 2% target based on recent data.
Some members believed that the recent progress on inflation, along with the rise in the unemployment rate, made a strong case for a 25-basis-point rate cut at the July meeting, or at least made such a move justifiable.
All participants agreed to maintain the current policy rate.
A majority of participants felt that risks to employment had risen, while many noted a decrease in inflation risks.
Several members cautioned that delaying or minimizing policy easing could harm economic activity or employment.
There has been “some further progress” toward the Fed’s 2% inflation target in recent months, according to participants.
Several members warned that reducing policy restraint too early or too much could undermine the progress made on inflation.
US TREASURY YIELDS FALL FURTHER AFTER FED MINUTES; TWO-YEAR YIELDS DOWN TO 3.903%
US TREASURY 10-YEAR YIELD DROPS 5.3 BASIS POINTS TO 3.765%, HITTING A TWO-WEEK LOW
US TREASURY 2/10 YIELD CURVE NARROWS INVERSION, LAST AT -13.8 BASIS POINTS
The Fed staff revised their economic growth outlook for the second half of 2024 downward, mainly due to weaker-than-expected labor market conditions.
US DOLLAR INDEX LITTLE CHANGED AT SESSION LOW AFTER JULY FED MINUTES, LAST AT 101.05, DOWN 0.33% FOR THE DAY
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