“In contrast, some other participants indicated that an increase” in the federal funds rate target range at the April 26-27 meeting “might well be warranted” if economic data came in as expected, the minutes said. “Many participants expressed a view that the global economic and financial situation still posed appreciable downside risks to the domestic economic outlook,” the minutes said. Data relevant to the Fed’s thinking “include not only domestic economic releases, but also information about developments abroad and changes in financial conditions.”
It was noted that FOMC had room to raise rates if officials were surprised by the economy’s strength, while having less room to ease if growth softened. “This asymmetry made it prudent to wait for additional information regarding the underlying strength of economic activity and prospects for inflation before taking another step to reduce policy accommodation,” the minutes said.
Euro is currently being traded above 1.14 handle, Aussie is near 0.76 area, while Sterling is few points above 1.4120 level.
Source: Bloomberg.com
