- Almost all FOMC members saw potential QE costs as increasing.
- Many FOMC participants noted recent drop in consumer sentiment.
- Various members stressed importance of continuing assessment of labour markets as well as benefits and costs of QE at upcoming meetings.
Analysis details (20:14)
- The FOMC minutes were more hawkish than expected, with expectation now that QE will be conducted over a shorter time-frame. Treasuries are seen under-pressure due to the expectation of less treasury buys, USD is strengthening as the prospect of a reduction in the expected amount to be printed supports price-action, and gold is seeing selling pressure as inflationary pressure subsides.
- Following the December meeting expectation was that large scale asset buys under the newly expanded QE program would be conducted for several years as a considerable amount of time is needed for labour market improvement.
03 Jan 2013 - 20:00 - Fixed Income - Source: Newswires
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