The Federal Reserve officials last month expressed concerns that the tight global financial conditions may negatively impact the economy United States for what they considered changing their planned pace of interest rate hikes in 2016.
“If the recent tightening of financial conditions hold, that could be a factor that amplifies the risks low “for the economy, the minutes said the US central bank meeting on 26 and 27 January, released on Wednesday.
most officials still expecting rates to rise and discussed, including, if an increase is justified in January, but after a long discussion on global risks said tight financial conditions could be a close equivalent to further increases in rates.
the officials discussed “alter their previous views appropriate rate target range for the federal funds rate, “according to the minutes.
However, they agreed that it would be premature to change the outlook on the US economy, and said they would monitor closely the global economic developments and oil prices and actions.
that suggests that the recent slowdown in global growth and the sharp declines in the stock market could lead the Fed to consider moving away from the signs that he had sent in December, it may raise interest rates four times this year.
“a number of participants was concerned about the potential liability for the US economy of the wider effects of a slowdown in China more than expected and other (emerging markets), “according to the minutes.
global financial markets have been volatile since the Fed meeting in January and pressured Mexico, one of the major trading partners of the United States, to rise on Wednesday interest rates to offset the weakness of the peso against the dollar.
the officials noted in the minutes that China’s problems could affect Mexico and Canada, . one of the major trading partners of the United States
REUTERS
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