FOMC Minutes Suggest September Rate Hike Despite Global Turmoil
by Tyler Durden
ZeroHedge.com
07/08/2015
Since The FOMC’s supposedly dovish June meeting, bonds have outperformed stocks rather notably and crude has crashed. The crucial aspect for the Minutes is the balance they struck between market turmoil overseas (dovish) and the domestic economic and housing recovery (hawkish) as to how that fits with an expectation for a ‘gradual’ post-September lift-off…
*FOMC SAW CONDITIONS STILL APPROACHING THOSE WARRANTING LIFTOFF (dovish)
*ONE MEMBER READY TO RAISE RATES IN JUNE BUT WILLING TO WAIT (dovish)
*MANY FED OFFICIALS EXPRESSED CONCERN ABOUT GREECE AT JUNE FOMC (hawkish)
*SEVERAL OFFICIALS VOICED UNCERTAINTY ABOUT CHINESE GROWTH PACE (hawkish)
With macro data having beaten expectations since then, the last best hope for stocks is that global turmoil picks up (as it has in Greece) to keep The Fed on hold (as they remain cornered to regain some ammo before the next ‘event’ happens). As SF Fed’s Williams notes today the “safer course” for raising rates would be to start sooner and proceed gradually.
The Rest…HERE
