Summary for the 22nd of August -FOMC Minutes


The FOMC Minutes from July’s interest rate decision meeting was released yesterday. The Minutes showed that the participants agreed on the wording Powell had used at the meeting, like how the lower target range for the federal funds rate was a part of a recalibration of the stance of policy, or mid-cycle adjustment, and not a start of series with rate cut. Two of the participants preferred to maintain current target range for the federal funds rate, while a couple of the participants indicated they would have preferred a 50 basis point cut.

Since the July meeting, the trade conflict and market volatility had escalated. The financial markets had priced in a 25 basis point rate cut on the September interest rate decision meeting, and a small probability of a 50 basis point rate cut.

Indices for 22nd  of August
Dow: +0.9% (20th of August)
S&P 500: +0.8% (20th of August)
Nasdaq: +0.9% (20th of August)
Nikkei: -0.1%  (22nd of August)
Chinese indices: -0.9% (22nd of August)
STOXX Europe 600 Index: -0.40% (22nd of August)

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