December Fed hike odds barely budge after FOMC minutes

Mike Powell  Getty Images

Federal Reserve policymakers were increasingly split on the outlook for inflation and how it might affect the future pace of interest rate rises, according to the minutes of the Fed's last policy meeting on June 13-14 released on Wednesday. The minutes show a Fed divided between officials comfortable with the unemployment rate undershooting their estimates about the sustainable level and those who fret that "a substantial and sustained unemployment undershooting" could trigger inflation or financial instability.

"A few participants also judged that the case for a policy rate increase at this meeting was strengthened by the easing, by some measures, in overall financial conditions", according to the minutes.

Last month's 8-1 vote to lift the benchmark interest rate another quarter percentage point, its second this year, signaled the Fed's confidence in a growing US economy and the eventual inflationary effects of low unemployment. Market-based measures of inflation compensation remained low; survey-based measures of longer-term inflation expectations had changed little on balance.

Cramer said he still expects to see a rate hike in September.

"These views suggest that a third rate hike this year remains a solid base case, but also that such a hike is unlikely to come before the December meeting", said Roberto Perli, an economist at Cornerstone Macro.

"Several" policy makers were in favor of starting the reduction of its $4.5 trillion balance sheet within a "couple of months". The Federal Open Market Committee, the monetary policy arm of the us central bank, opted to raise interest rates at its June 13-14 meeting.

It topped $1,223 in electronic trading immediately after the Fed minutes, then pulled back under $1,221.

The Fed said in June it would runoff maturing principal payments on Treasuries initially at $6 billion per month, increasing by $6 billion every three months over 12 months, until it reaches $30 billion.

The strengthening job market left a lot of them comfortable with raising a key short-term rate last month.

The Fed's next meeting is July 25-26.

After the June meeting, Yellen said the plan would lead to "a gradual and largely predictable decline" in the assets.

But others pushed for holding off on a decision "until later in the year", saying that kicking off the process too soon could send the signal that the Fed had moved away from its current plan to tighten policy only gradually.

Related:

  • Ex-Bigg Boss Contestant Mandana Karimi Files Domestic Violence Case

    Ex-Bigg Boss Contestant Mandana Karimi Files Domestic Violence Case

    According to a report by a leading daily, Mandana was constantly insulted and was not allowed to meet her friends. Karimi's lawyer Madhukar Dalvi said that the matter is now in court and that they would contest it as per law.
    Spidey Faces The Vulture In New Spider-Man

    Spidey Faces The Vulture In New Spider-Man

    He's young, dorky and quick with the sarcastic one-liners so he should fit right in with the current crop of Marvel superheroes . In an interaction with Rajeev Masand, Tom Holland said, "Spider-man is a superhero with everyday problems".
    Apple Inc.'s Epic iPhone 8 Fingerprint Fail

    Apple Inc.'s Epic iPhone 8 Fingerprint Fail

    It sports an nearly bezel-less display (barring the top lip), 3D front camera with facial recognition, and elevated sound quality. According to the analyst, Apple's next-generation OLED iPhone will indeed ditch the physical home button beneath the display.
  • Red Cross calls for donations amid blood shortage

    Red Cross calls for donations amid blood shortage

    Scheduling an appointment and completing an online RapidPass questionnaire can reduce the time it takes to donate . A critical blood shortage across the U.S.is prompting American Red Cross officials to sound the alarm.
    Prosecution on MH17 to bring justice: Malaysia

    Prosecution on MH17 to bring justice: Malaysia

    Of the 283 passengers and 15 crew members who died when the flight was shot down on July 17 2014, 196 people were Dutch nationals. They have also identified the Russian soldiers who they believe brought the missile system into Ukraine.
    Trump says media attacks to protect his agenda

    Trump says media attacks to protect his agenda

    A few minutes after the tweet was posted from his personal account, the video was tweeted from the President's official account. Trump also claimed that he once denied to meet with Brezezinski because "she was bleeding badly from a face-lift".
  • Tension triggers on borders of Sikkim between India and China

    Tension triggers on borders of Sikkim between India and China

    Bhutan, which only borders China and India, has no formal diplomatic relations with China and is closely allied with India. With the face-off showing no signs of easing, India and China have reinforced troops in the region.
    Mamata's allegation baseless, meant to blackmail people: Tripathi

    Mamata's allegation baseless, meant to blackmail people: Tripathi

    It was a humiliation for not Banerjee but for the model of parliamentary democracy which is in use in this country for 70 years. Her anger is because the Governor performed his constitutional duty and enquired about the (Baduria) incident.
    Trump White House Staff Payroll Nearly $36 Million And Top-Heavy

    Trump White House Staff Payroll Nearly $36 Million And Top-Heavy

    Ivanka Trump took her plea for equal pay for equal work directly to CEOs at a Tuesday summit at the White House . Female White House staffers are paid 20 per cent less than their male colleagues, CNN has revealed.
  • Why did Apple, Amazon, Google stocks crash to the same price today?

    Why did Apple, Amazon, Google stocks crash to the same price today?

    Reports said that the error occurred due to a computer glitch , however, the glitch did not affect any market trading. Similarly, Apple shares fell 14% to US$123.47 on both Google Finance and Yahoo Finance.
    'Eight injured' in shooting outside French mosque

    'Eight injured' in shooting outside French mosque

    According to a translated article from La Provence , police have dismissed the possibility that this was a terrorist attack. The police are now hunting the two gunmen as the latter fled the scene right after they had opened the fire on worshipers.
    USA  denies visas to Afghanistan's all-girl robotics team

    USA denies visas to Afghanistan's all-girl robotics team

    One of the girls, Fatemah, who's 14, told Forbes that "we want to show the world we can do it, we just need a chance". Instead of attending, the team will be video conferencing in while their robot competes against 163 other inventions.

Comments

Latest news

Ruckus in J&K assembly over GST
Drabu said Article 370, which gives the state special status, shall not be compromised in any way. Describing the GST Council as a "truly federal institution", Mr.

Women in WH Earn 80 Cents on the Dollar Compared to Men
Press Secretary Sean Spicer, White House Counsel Donald McGahn and chief strategist Stephen Bannon are among the men in that list. More than 40 percent of White House staffers earn in excess of $100,000 a year, according to new salary details released Friday.

Tropical Depression likely to form in the Atlantic this week
Recent guidance has this disturbance (deemed Invest 94L ) pushing west and west/northwest, likely north of the Lesser Antilles. The chances of it becoming a depression were raised to 70 percent in 48 hours and 80 percent in the next five days.

Canada: millions of dollars in compensation to a former inmate of Guantanamo
Khadr, now 30, recently moved into his own apartment in Edmonton and hopes to attend classes in the fall to become a nurse. Canadian Prime Minister Justin Trudeau declined to confirm the apology and money when asked about in Ireland on Tuesday.

Worldpay FTSE 100 shares surge amid JPMorgan and Vantiv Inc takeover rumours
Morgan has been reshaping its business predicting customers will move away from credit cards and simply pay with their cellphones. It says that on a typical day it processes more than 31 million mobile, online and in-store transactions, or around 400 a second.

Nathan's Hot Dog eating contest taking place on the Coney Island boardwalk
And for anyone who is interested in wagering on the contest, yes, you can do that, the odds to win are listed below as well. Aside from bragging rights and the glory that comes with competitive eating, the contest pays out $40,000 in prize money.

Mark Cavendish in hospital after horror Tour de France crash
Eurosport is the home of the Tour de France . "Winning in the Tour is the best". German sprinter Andre Greipel finished third and had strong words for Sagan.

USA lifts laptop restriction for flights from Abu Dhabi
The airline said its plan to conduct "enhanced inspections" of passengers had convinced the United States to lift its restrictions.

Prime Minister arrives in Israel on historic visit
Modi was received at the airport by his Israel counterpart Benjamin Netanyahu and other senior ministers. Modi, who was given a red carpet welcome, hugged Netanyahu after descending from the special aircraft.

Joe Root quiz: How much do you know about England's new skipper?
Left-handed batsman Elgar, who has played 35 test matches, will captain South Africa for the first time in a test match. Theunis de Bruyn or the uncapped Aiden Markram will replace du Plessis' in the side.

Federation Internationale de Football Association president, Infantino insists VARs will be used at 2018 World Cup
It is this youthful strength in reserve that is most impressive . These are the things that will stay with the world champions. Four were on Russia's Confederations Cup squad as well.

Vehicle crashed into group of pedestrians in Boston
Mr Procopio said based on the preliminary investigation, "there is no information that suggests the crash was intentional". Photo The police said a taxi driver struck a group of pedestrians, injuring several, in Boston on Monday.

France and Africa must forge ties to combat terrorism - Macron
On Sunday, Colombia's foreign ministry said in a statement that "knowing she is alive motivates us to keep working for her timely release".

Horn stuns Pacquiao to win WBO welterweight
And by then the world of boxing will know Jeff Horn . " Manny Pacquiao is an absolute warrior, he's a legend of the sport, " he said.

Canadiens' Carey Price Now NHL's Highest Paid Goalie With Contract Extension
In 62 games a year ago , the Anahim Lake, B.C., native posted a 37-20 record along with five overtime/shootout losses. Price was entering the final year of his deal with Montreal , which will pay him $7 million .

Other news