Article by ForexTime
The Federal Reserve meeting minutes of July were published on Wednesday signaling to markets that the US central bank is closer to raising interest rates.
While most policy makers of the Federal Open Market Committee (FOMC) wanted further evidence before changing their view on when rates should rise, many were of the view that the surprisingly strong jobs market recovery could merit a rise in rates sooner than currently anticipated.
As mentioned in the FOMC minutes of the July 29-30 policy meeting:
“Labor market conditions had moved noticeably closer to those viewed as normal in the longer run. ”
The minutes indicated that that policymakers “generally agreed the job market was healing faster than they had expected”.
Free Reports:
Most Fed policymakers felt any change in their view on when to start raising rates “would depend on further information on the trajectories of economic activity, the labor market and inflation,” the minutes mentioned.
The Fed has kept benchmark interest rates at record lows near zero since December 2008, but has hinted it would likely begin to hike them up some time next year.
Upon the release of the FOMC minutes on Wednesday, the US dollar shot up against most major counterparts while 10-year US Treasury yields also rose.
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