August FOMC Minutes: Keep on hiking, for now – TDS

Analysts at TD Securities explain that the Fed officials at the August FOMC meeting concluded that economic conditions were evolving largely as they had anticipated, and if they continued to do so, additional gradual rate hikes would be appropriate — including another one "soon" in September.

Key Quotes

“While concerns around trade have not yet impacted Fed officials' assessment of appropriate policy, they noted a large amount of uncertainty around this issue.”

“Other downside risks included housing, oil prices, and EM, but these were seen as balanced against recent momentum and fiscal stimulus on the upside.”

“FX: There was limited reaction in currencies, but the acknowledgement that rates are nearing neutral may eventually create a dent into the "divergence" narrative that has been so prominent through Q2/Q3 of this year.”