FOMC Minutes: Pace of recovery in activity and employment moderated in recent months

Minutes of the FOMC's January 26-27 meeting revealed on Wednesday that policymakers noted that the pace of the recovery in economic activity and employment had moderated in recent months.

Key takeaways as summarized by Reuters

"Policymakers noted economic conditions are currently far from longer-run goals, need to remain accommodative until achieved."

"All participants supported the January policy decision."

"Participants emphasized it's important to abstract from short-term factors affecting inflation in judging progress toward goal."

"Participants judged it's likely to take some time to achieve substantial further progress bar on QE."

"Participants saw progress on vaccinations as essential for supporting further gains in consumer spending and economic recovery more generally."

"Participants noted the importance of communicating well in advance of any change to the pace of bond purchases."

"Participants judged the low level of labour force participation likely reflected factors including health concerns and additional childcare responsibilities."

"Many participants stressed the importance of distinguishing between one-time relative price changes and the underlying inflation trend."

"Participants generally anticipated inflation would move up over time."

"Participants noted overall financial conditions remained highly accommodative."

"A few participants saw relatively tight credit conditions for some borrowers."

"Participants continued to see elevated uncertainty surrounding the outlook."

"Many participants saw risks from new virus strains, potential public resistance to vaccination and distribution and production difficulties."

"Many participants stressed sustained support from the fiscal policy would help address the hardships faced by groups most afflicted by the downturn, particularly lower-income, black and Hispanic households."

"Several participants saw upside risks to inflation from supply constraints."

Market reaction

This statement doesn't seem to be having a noticeable impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.5% on the day at 90.95.