HiFX: Foreign Exchange Specialists

• Headlines

May 21, 2008

The latest FOMC minutes revealed that the last rate cut was a “close call.” Fed members were torn as risks to growth remain to the downside while inflation risks which remain skewed to the upside are becoming more of a concern.  Although the news of the minutes was not much of a surprise to the market, the fact that the Fed decision was a “close call” suggests the FOMC may now be looking to take a balanced approach to monetary policy preferring a data dependence stance.  Overall the USD was largely unchanged on the back of the Fed minutes.