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2008 Economic Calendar |
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Resource Center » U.S. & Intl Recaps | Release Dates | Why Investors Care | Today's Calendar
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On December 14, 2004, the Federal Open Market Committee announced that they would release the minutes of each meeting with a three week lag. This is a vast improvement from the previous release of the minutes which ranged from a six to eight week lag. While the FOMC releases a statement after each meeting which describes the policy action (or inaction), the minutes generate a lot of attention in the financial markets because they reveal more details on the discussion of the most recent FOMC meeting. Why Investors Care
Highlights
Minutes from the Sept. 20 policy meeting show that policy makers had their guard up against inflation, saying upside risks to inflation "appeared to have increased" and that further rate hikes will be needed. Moreover, policy makers were concerned that a pause in rate hikes, an option supported by many observers and even one FOMC voter, could dent their inflation credibility.
Fed Governor Mark Olsen dissented against the meeting's rate hike, arguing that more time was needed to assess the damage from Katrina. Otherwise, there was no sign of dissension at the meeting. Policy makers expect economic data to be heavily skewed for several months but doubt Katrina will have lasting impact.
Policy makers also discussed changes to the language of the statements, which have repeated the word "measured" to describe the pace of rate hikes. Removal of the word will mark a major shift in policy, and judging by the tone of the minutes would probably pave the way for larger 50-basis-point increases. The markets showed no reaction to the minutes, which point strongly to a continuing series of rate hikes ahead.
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