Wednesday, November 20, 2019

FOMC Minutes: "Most participants judged that the stance of policy, after a 25 basis point reduction at this meeting, would be well calibrated"

by Calculated Risk on 11/20/2019 02:14:00 PM

From the Fed: Minutes of the Federal Open Market Committee, October 29-30, 2019. A few excerpts:

With regard to monetary policy beyond this meeting, most participants judged that the stance of policy, after a 25 basis point reduction at this meeting, would be well calibrated to support the outlook of moderate growth, a strong labor market, and inflation near the Committee's symmetric 2 percent objective and likely would remain so as long as incoming information about the economy did not result in a material reassessment of the economic outlook. However, participants noted that policy was not on a preset course and that they would be monitoring the effects of the Committee's recent policy actions, as well as other information bearing on the economic outlook, in assessing the appropriate path of the target range for the federal funds rate. A couple of participants expressed the view that the Committee should reinforce its postmeeting statement with additional communications indicating that another reduction in the federal funds rate was unlikely in the near term unless incoming information was consistent with a significant slowdown in the pace of economic activity..
emphasis added