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Minutes of the May monetary policy meeting


Last night, at 0200 Hong Kong time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) monetary policy meeting in May. The minutes discussed possible future monetary policy and the outlook for the U.S. economy.

In terms of future monetary policy decisions, there is not much difference from the results of the previous meeting. It also wants to eliminate the economic bubble and suppress inflation by raising interest rates and shrinking the balance sheet. Most participants believe that interest rates should also be raised by 50 points in the next few meetings.

The majority at the meeting agreed that the current U.S. economic outlook is highly uncertain, so there should be a quick shift to a more neutral monetary policy stance while maintaining labor market conditions. It also suggested that due to the current uncertain economic outlook, a more restrictive monetary policy may be more effective in tackling inflation.

Last night, the three major U.S. indexes opened lower and closed up after the meeting minutes were released. The reason may be that some people in the market interpret the information as a good signal of when the Fed may end its interest rate hike. This interpretation has once again caused market differences.
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