Fed minutes reveal members wary of 'downside risks' to US economy

Outlook more 'uncertain' in January meeting

Natalie Kenway
clock • 1 min read

Minutes from the Federal Open Market Committee's January meeting reveal a more dovish tone as members agreed "uncertainty had increased", putting doubts over the likelihood of a further rate hike in March.

Policymakers considered changing course on their plan to raise rates throughout 2016, reported the BBC, as minutes released last night showed some members felt that the tighter US economic conditions were "roughly equivalent" to further interest rate increases. Although members were wary of making quick judgements on the market turbulence seen year to date, they agreed the outlook for economic growth and inflation had become "uncertain". Which path will Fed follow after tough start to 2016? The minutes said: "Members observed that if the recent tightening of global financial conditi...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

US adds 228,000 jobs in March as unemployment rate ticks up
US

US adds 228,000 jobs in March as unemployment rate ticks up

Unemployment at 4.2%

Sorin Dojan
clock 04 April 2025 • 2 min read
Uncertainty of Federal Reserve's rate path after Trump unleashes tariff chaos
US

Uncertainty of Federal Reserve's rate path after Trump unleashes tariff chaos

Same week as recession expectations rose

Eve Maddock-Jones
clock 03 April 2025 • 3 min read
US swings out of favour at fastest rate since 2010
US

US swings out of favour at fastest rate since 2010

Bonds hit by ‘biggest drop in sentiment’

Sorin Dojan
clock 02 April 2025 • 2 min read
Trustpilot