FOMC meeting minutes have potential to upset December hike

16th November 2015 By: Ranko Berich

FOMC Meeting Minutes – 18/11/15

This week’s Fed minutes will be one of the last major FOMC events before December’s all-important meeting, meaning they will be gone through with a fine tooth comb for any hints about their intentions for next month.

Recent FOMC speakers have revealed a divide exists between a majority of those who are happy hiking rates in the near future, and those that don’t believe it’s justified. The doves, led by Lael Brainard and Charles Evans, appear to be in the minority. These minutes will be very useful for judging just how persuasive Brainard’s arguments have been amongst the rest of the FOMC.

However, even if the doves don’t win the argument about hikes in December, their views may prove influential for the path of policy in 2016. Ultimately, we won’t know for sure what the Fed will do until next month. But markets are treating a December hike as a near certainty at the moment, so any signs of hesitance or discord have the potential to weigh heavily on USD.