Report
Minutes: (Baseless) Fear of Low Inflation Caused FOMC to Back Off in June
posted by Michael Lewis on July 06, 2016
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Headline
the FOMC’s dovish majority was motivated principally by fears that inflation would remain stubbornly “too low.” FOMC will have little choice but to resume hiking rates before year-end.
Abstract
The minutes of the June 14-15 FOMC meeting contained no bombshells, but they did clear up a few minor mysteries. And they underscored FMI’s initial assessment that the FOMC’s dovish majority was motivated principally by fears that inflation would remain stubbornly “too low,” rather than by any anxiety over the weak May jobs report.