FOMC Minutes Show Members Concerned about Slowing Economic Growth, Very Low Inflation

Posted on 08/21/2019 2:36 PM

The Wednesday afternoon release of the minutes from the last meeting of the Federal Reserve's Open Market Committee (FOMC), which took place July 30-31, shows members were concerned about the potential slowdown in U.S. and global economic growth due to the U.S./China trade war, as well as the  very low inflationary environment in the world's major economies.

Despite Fed Chairman Jerome Powell getting criticized for using the term "mid-cycle adjustment" regarding the interest rate reduction at the last FOMC meeting, the FOMC minutes also said the last rate cut was indeed a mid-cycle adjustment.

The minutes stressed the FOMC must exhibit flexibility and examine new data in determining future monetary policy moves.

Two FOMC members wanted the Fed to cut rates by 0.5% instead of the 0.25% rate cut that was implemented.

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