FOMC Minutes: Hawkish Rumblings Getting Louder

It would appear that even though the relative dovishness of the FOMC has increased, a realization that the party has to stop sometime is dawning on the PhDs - though for now, the printing will continue until morale improves... SEVERAL FOMC PARTICIPANTS SAID EASING MAY PROMPT EXCESSIVE RISK MANY FOMC PARTICIPANTS VOICED CONCERN ABOUT RISKS OF MORE QE SEVERAL ON FOMC SAID FED SHOULD BE PREPARED TO VARY PACE OF QE FOMC PARTICIPANTS SAID ECONOMY WAS ON 'MODERATE GROWTH PATH' SEVERAL FOMC PARTICIPANTS SAW IMPROVED U.S. CREDIT CONDITIONS A NUMBER OF FED OFFICIALS SAID TAPERING QE MAY BECOME NECESSARY Pre-FOMC: ES 1521.00, 10Y 2.01%, EUR 1.3337, Gold $1580, WTI $94.18 Some of the key sections: However, a few participants expressed concerns that the current highly accommodative stance of monetary policy posed upside risks to inflation in the medium or longer term. On the death of Okun's Law: A number of participants thought that the growth of potential output had been reduced in recent years, possibly in part because restrictive financial conditions and weak economic activity in the aftermath of the financial crisis had reduced investment, business formation, and the pace of...