FOMC minutes show that some policymakers were prepared to announce a starting date for winding down the balance sheet at the July meeting

- Some voting policymakers said further interest rate hikes should wait until there were signs inflation would rise to Fed's 2.0% target

- Voting policymakers were concerned about slowdown in inflation and agreed to monitor prices closely

- Policymakers disagreed on whether inflation expectations were well-anchored

- A couple of policymakers said high stock prices might not pose big risks to financial stability

- Full release available here

Reaction details (19:13)

- The initial reaction saw some further USD weakness as markets focused on the Fed's caution over inflation. Over the next 10 minutes USD/JPY moved to session lows from 110.50 to 110.20.

- Treasuries pushed marginally higher with Sep'17 10y T-notes moving from 126.13 to 126.16 in immediate reaction. 

- Spot gold also pushed higher amid the weaker USD, rising to session highs of 1281.70. 

16 Aug 2017 - 19:00- Fixed IncomeImportant- Source: Newswires

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