FOMC Minutes: Current stance of policy remains appropriate to foster further recovery

Minutes of the FOMC's March 16-17 meeting revealed on Wednesday that policymakers agreed that despite an improving economy, the US was still far from the Federal Reserve's goals.

Key takeaways as summarized by Reuters

"Participants noted it would likely be some time before substantial further progress seen on goals."

"Participants agreed the path ahead remained highly uncertain with the pandemic continuing to pose risks."

"Given those risks, the current stance of monetary policy remained appropriate to foster further recovery."

"A number of participants highlighted the importance of communicating progress well in advance of potential QE taper; timing would depend on the economy, the pace of progress."

"Various participants noted that changes in policy path should be based primarily on outcomes, not forecasts."

"Most participants noted they viewed risks to the outlook as broadly balanced."

"Participants broadly supported increasing the counter-party limit on overnight reverse repo operations, and a few participants noted they would support removing the limit altogether."

"Fed chair noted that should downward pressure on overnight rates emerge, might be appropriate to adjust administered rates at upcoming meetings or even between meetings."

Market reaction

The US Dollar Index showed no immediate reaction to this publication and was last seen gaining 0.04% on the day at 92.34.