FOMC minutes: yes, risks are to the downside… – Rabobank

By FXStreet Analysts at Rabobank explained that the minutes of the FOMC meeting on March 15-16 show that participants generally saw global economic and financial developments as continuing to pose risks to the outlook for economic activity and the labor market in the US.

Key Quotes:

“However, they failed to agree on a collective assessment of the balance of risks. As Yellen indicated at the press conference at the time, some saw them as balanced, some as to the downside.

According to the minutes, several participants thought that the underlying factors abroad that led to a sharp, though temporary, deterioration in global financial conditions earlier this year had not been fully resolved and thus posed ongoing downside risks.

However, several participants also noted the possibility that economic activity or labor market conditions could turn out to be stronger than anticipated. Despite the inability of the Committee to agree on a collective assessment of the balance of risks, the minutes state that many participants expressed a view that the global economic and financial situation still posed appreciable downside risks to the domestic economic outlook.”
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Source:: FX Street