Fed: Not much for the markets – Deutsche Bank

In view of analysts at Deutsche Bank, FOMC minutes of the March meeting provided a lot of interesting details, but not much in the way of market-moving revelations.

Key Quotes

“On the hawkish side, the minutes said that most participants expected Q1 economic weakness to reverse later this year, and a few participants noted that the lower-for-longer rate environment could pose financial stability risks.”

“On the other hand, a couple of them favoured using macro prudential policies to alleviate risks. Consistent with the dotplot, some participants judged further rate hikes to be appropriate later this year.”

“On the dovish side, several participants said that rates “could shift in either direction” depending on how the economy develops. That’s one of the clearest signals yet that the committee is open to their next move being a cut, and several members also voiced concerns about low longer-term inflation expectations. So something for everyone in these minutes, and no lasting market impact.”