HiFX: Foreign Exchange Specialists

• Headlines

August 26, 2008

The release of the August 5th FOMC minutes revealed an overall balanced statement.  The Fed continues to see growth moderating over H1 2009 while over the same period they expect inflation risks to moderate.  The unmooring of inflation expectations continues to be a grave concern of all members but the recent sharp contractions in growth hinder the Fed’s ability to make any rash changes to monetary policy.  As the FOMC minutes failed to reveal anything new or give a firm indication of the Fed’s next move the U.S. dollar was virtually unchanged.