March FOMC minutes show nervous nutrition that moves in risks and growth

Federal Reserve Meetings Lecturer from March 18 to 19 Fears of inflation and Growth Amid uncertainty in commercial policy.

The minutes reveal the existence of the Federal Reserve, increasingly concerned about the capabilities Recession The environment is higher Definitions Increased inflation with the slowdown of economic growth at the same time. This puts policy makers in a difficult situation, as the traditional response is up Economic inflation (A more strict policy) that contradicts the exemplary approach to the slower growth (more clarified policy).

The committee also decided to slow down the quantitative tightening by reducing the maximum monthly reservoir of $ 25 billion to $ 5 billion.

Below are the main points of the version:

• Almost all the participants watched The risks to inflation as it tends to the upward trend and The risks to employment as it tends to the negative side
• Officials Reduce its growth expectations They raised inflation expectations for 2025
• Committee Expected price discounts For the year three to two
• Many members noticed that their contacts were The cost report is already increased In anticipation of definitions
• Some participants have warned of “difficult scars” if inflation is proven continuous while growing growth
• The committee decided Slow quantity tightening By reducing the maximum tank cabinet from $ 25 billion to $ 5 billion
• Al -Hakim and Al -Yir opposed the surface flow of the public budgetPreferred to maintain the previous pace
• Members emphasized that they were in a good position to respond to continuous inflation or economic weakness

Link to FOMC meetings (March 2025)

The decision to slow down the public budget was primarily driven by debt ceiling fears, with officials concerned that the scarcity of reserves could appear with a little warning once the debt ceiling is resolved and the treasury begins to rebuild its account. This indicates that the Federal Reserve takes a more cautious approach to the quantitative tightening program, although most officials have confirmed that it should not be explained as a change in the position of monetary policy.

Reducing the expected federal reserve rates from three to two for 2025 indicates the most patient’s approach to mitigation and indicates that the committee is ready to maintain policy for a longer period if inflation remains high. This most rising position contradicts the market expectations earlier in the year to alleviate more aggressive.

Market reactions

US dollar against major currencies: 5 minutes

The US dollar caught a rapid boost after the FOMC meeting recorded, and it came out of the next recession Trump moved to alleviate the liberation day (except China). The federal reserve bounce is likely to refer to lower price cuts this year, which had been previously disposed of.

But the gathering did not last long. Between the continuous tariff drama and the risks of fixation full of treatment, the Federal Reserve Bank, the bulls in dollars quickly lost their momentum. Greenback was drifted around the rest of the session before settling in some narrow ranges.

Since the FOMC was minutes, the dollar was on the back foot, as it slipped through the painting except for the Canadian -related Canadian dollar, which did not get much love as well.