There were three dissents among the voters in this FOMC meeting which in itself is a bit unusual but the fact that two came from the “Hawkish” side and one from the “Dovish” side shows the wide range of opinions on the economy.
“The committee judges that it can be patient in beginning to normalize the stance of monetary policy,” the Federal Open Market Committee said today in a statement in Washington, removing a calendar-based phrase with language that gives it more flexibility
What the Fed manages to avoid is any reference to the global financial market turmoil witnessed earlier in October. Instead, they noted that, on balance, there had been “a substantial improvement in the outlook for the labor market
The credibility of the Federal Reserve appears to be waning as the market refuses to take their threats of pulling away the liquidity punchbowl seriously. On what was, by any objective measure, a spectacularly bad non-farms payroll number on Friday, the S&P 500 futures rallied
Though the vote in favor of last month’s policy statement was a relatively tame 9-1 decision, with hardcore hawk Charles Plosser as the only dissenter, the recently released minutes showed more discord within the committee than the statement let on.