September Fed minutes hold the line - ANZ

Research Team at ANZ, notes that the FOMC made it clear when they met in September that they intended to raise rates again in 2016, and that every meeting was ‘live’.

Key Quotes

“Since then, US data has been decidedly mixed and bond markets have wobbled. Yesterday’s minutes were always therefore going to have a slightly historical tone. Several members said a hike was needed “relatively soon” and “several stated that the decision [not to hike]…was a close call” but the minutes had little impact on markets on their release. But 10-year Treasury yields have now risen 43bps since their low in early July, dragging up global yields.

Overall, the minutes provided little new news, and are therefore unlikely to result in the market taking the chances of a November hike any more seriously, but they also provided nothing to stand in the way of the current market moves, i.e. increasingly pricing in a December hike but being a little nervous about it.”