The FOMC minutes cemented the patience that the Fed will have for future rate hikes.

The 10-year yield on US Treasuries was little changed following the announcement at 2.721, while the dollar extended its declines.  The Minutes noted, “With an increase in the target range at this meeting, the federal funds rate would be at or close to the lower end of the range of estimates of the longer-run neutral interest rate, and participants expressed that recent developments, including the volatility in financial markets and the increased concerns about global growth, made the appropriate extent and timing of future policy firming less clear than earlier.”

Dollar bears are focusing on this part of the Minutes, “Against this backdrop, many participants expressed the view that, especially in an environment of muted inflation pressures, the Committee could afford to be patient about further policy firming.”

While they noted the risks to the outlook appeared roughly balanced, they highlighted that the downside risks may have increased.

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