What are FOMC Minutes, and why are they important?
The FOMC Minutes is a detailed report from the FED’s previous FOMC meeting. The main areas that economists and traders watch are the voting results for initiatives that were brought up at the FOMC meeting, and the detailed economic review that is reported. A “hawkish” report may indicate future interest rate hikes taking place, and is viewed as bullish for the Dollar. While “dovish” voting, and a conservative view on the US economy is viewed as a Dollar negative. Today’s Announcement After raising the Discount Rate two months ago, the FED has created expectancy for a continuation of tightening monetary policies. This action, along with worries in the EU and UK has led the Dollar Index to rally since the beginning of the year even as risk appetite, as measured by commodity and equity prices has risen. However, the FED has so far been unwilling to provide a date when they anticipate raising the FED rate. Also, Board Members have stated that the US economy continues to be fragile and risk
