The miserable first quarter gross domestic product print was not a primary concern amongst the Federal Open Market Committee members who were more apprehensive about the potential implications of higher rates. In the latest release of the Fed Meeting Minutes, voting members were cited as suggesting that the factors dragging on growth were merely transitory. The stronger dollar specifically was noted as a primary driver of weakness leading to concerns that any rate liftoff would actually hinder growth as it would add to momentum higher in the dollar. There is the possibility of higher rates in the pipeline at the next FOMC Meeting, but many Fed officials saw the likelihood of a June rate hike as unlikely. Equities were mostly unchanged on the news, retreating slightly from near record highs, led lower by the Dow Jones Industrial Average.
FOMC Dismisses First Quarter Weakness
Daily Analysis - 21/05/2015