FOMC Minutes: Decision to leave rates on hold in September was a close call - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the FOMC Minutes reflected the fact that the decision to leave rates on hold in September was a ‘close call’ but, not for the first time, the decision to wait prevailed.

Key Quotes

“A tightening labour market is the main argument for raising rates and although a recovery in the labour force has stopped the downtrend in unemployment, wage growth IS trending ever so slowly higher. The rates market still expects a hike in December but there was too, a small correction in the march higher in yields, helped by the correction in the rise in oil prices.”