The Federal Reserve sees a near term rate hike, but November’s minutes showed also that there is a hard discussion about inflation. Below we highlight the most important remarks from minutes:

  • Many policy makers see near term rate hike as warranted
  • Some officials were opposed it due to weak inflation
  • Almost All Officials Reaffirmed Their Support For Rate Hikes To Be Gradual
  • Several Officials See Near Term Hike Being Data Dependent
  • Several Officials Note Concern On Low Inflation Expectations, Possible Financial Imbalances
  • Discussion Included Possibility Inflation Expectations May Have Been Undercut By Tightening Monetary Policy, While Price Rises Were Below Target
  • Officials Generally Saw Overall Gains In Wages As ‘Modest’

The dollar has dipped to session low after releasing FOMC minutes. The USDJPY may aim to 61.8 retracement which coincides with 110,20.

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The USDJPY has decreased significantly today due to weak data and slightly dovish remarks from some FOMC members. Source: xStation5