The protocols of the September FOMC meeting : the fed plans on raising interest rates despite weak inflation



  • The experts at the fed expect the effects of hurricanes will increase GDP in the 4th quarter

  • Experts have kept the forecast moderately faster GDP growth through 2019, inclusive

  • Experts predict that GDP in the second half of 2017 will grow slightly more quickly than previously expected

  • The participants expect GDP growth to 3 meters will be restrained due to the effects of hurricanes

  • The meeting participants expect the acceleration in GDP growth in the 4th q, due to restoration work after the hurricanes

  • Experts have slightly lowered its estimate of long-term natural rate of unemployment

  • Experts expect that unemployment will continue to decline in the next couple of years

  • The fed expects unemployment “will decline” to the end of the year

  • Experts slightly increased the forecast for growth and inflation for 2017 due to the influence of hurricanes

  • The meeting participants expect the increase in gasoline prices will lead to a temporary increase in inflation

  • The majority of participants did not consider a package of tax measures in their forecasts

  • Some participants estimated long-term inflation expectations are as low or falling

  • In General, long-term inflation expectations was considered relatively stable

  • Many of the participants at least partially attributed to the weakening of inflation this year on account of individual factors

  • Participants generally expect that the market reaction to a reduction in the fed’s balance sheet, “is likely to be limited”




The protocols of the September FOMC meeting : the fed plans on raising interest rates despite weak inflation 11.10.2017

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