The minutes of the Reserve January Federal Open Market Committee Federal has shown that members of the policy are concerned about the events of market and their impact on the US economy. Some members noted that the decision Fed, AOS to raise rates in December triggered a selloff in shares and return to a historical assessment.
US economic fundamentals have disappointing the most hawkish members awaiting the rest of the global economy struggles to regain an active pace of growth. Employment in the United States continues to be the strongest part of the economy, but as the last NFP showed even that growth can not continue forever as the economy reached full employment (the least in the ratio of non-farm payroll).
The obvious growth uncertainty on FOMC minutes was the USD to lose ground against the major pairs that monetary policy divergence edge evaporated again. Fed President Janet Yellen had managed to revive the chances of central banks hiking rates at all in 2016 after his two stories last week, but now the notes of the FOMC meeting highlighted several roadblocks as members do not know about national and international growth.
The Fed chairman repeated the mantra, Äúdata dependency at to guide the pace of interest rate hikes, but the reading of the minutes, it seems there is little confidence that data will dictate the rate in the next couple of meetings.
There have been positive developments of the chaos at the beginning of the year in global markets. China, AOS stock market and oil prices have reached stability. China will continue to intervene on behalf of its economy to stimulate growth, but it remains to see how the government can support a slowing economy.
The oil price is supported by an agreement in principle by some OPEC and Russia to freeze production levels in January file AOS high efficiency. New seen as a step in the right direction, a freeze on January levels, AOS means won, AOT there is a new production record in February. The price of West Texas and Brent has stabilized but remains the whims of statements and comments of the members of the agreement. Iran for its part supported the agreement, but are not bound by it. This means that they agree to stabilize prices, but they do not plan to cut production, especially after coming out of a penalty period.
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