On Wednesday, the Federal Reserve released the minutes from its 2-day meeting September 20-21, 2011.
The release shows a divided Fed in disagreement about the current U.S. monetary policy. The group reached compromise for new economic stimulus, however, and maintained its commitment to accommodate interest rates.
Wall Street reacted tepidly to the minutes. Mortgage rates in the Dix Hills/Melville area worsened slightly post-release.
The Fed Minutes gets less press than the FOMC’s post-meeting press release, but it’s every bit as important. Because it details the conversations that take place among voting and non-voting Fed members at FOMC meetings, the Fed Minutes is an inside-look at the debates and discussion that lead to new monetary policy.
As examples, here are some of the topics covered at the September FOMC meeting :
- On growth : Economic growth was slow, but “did not suggest a contraction”
- On housing : The market continues to be “depressed by weak demand”
- On rates : The Fed Funds Rate will remain low until mid-2013
The Fed’s next meeting is November 1-2.