- FOMC meeting minutes
Meeting minutes of the FOMC's crucial December meeting, when the US central bank made a unanimous historic decision to hike interest rates for the first time in almost a decade, showed that central bankers believed economic activity expanded at a moderate pace. While net exports remained weak, consumer and business spending was solid, while the housing sector improved further. Policy makers expected that with gradual adjustments of monetary policy, economic activity would continue to expand at a moderate pace. However, the Fed expressed concerns over inflation in the near term, saying that recent declines in energy prices and the persistent strength of the US Dollar would exert additional downward pressure. Still, the Committee predicted inflation to reach the target of 2% in 2018, with a gradual gains in the coming years. Inflation has been below the Fed goal for more than three years.
Meanwhile, the US labour market continues to improve, with private-sector creating 257,000 jobs in December, the strongest gain since December 2014. The Fed expects the jobs market to strengthen further. The ADP employment change data came ahead of the government's December payrolls on Friday. Economist predict employers likely added 200,000 workers last month.
© Dukascopy Bank SA