Goldman’s Fed Minutes Post-Mortem: “The Elephant Was In The Room After All”

Jon Alternative Media, Banking, Blogosphere, Economy, Fiscal Policies

Earlier we showed what some of the more prominent sellside strategists thought of the FOMC’s surprisingly hawkish (yet maybe not) December minutes. And now, to top off the Fed Minutes day, here is perhaps the only analysis that matters: that of Goldman Sachs, which notes that as we speculated in December when the Fed hiked, “the hawkish December FOMC statement and accompanying increase in median interest rate expectations were to some extent motivated by the possibility of easier fiscal policy – as opposed to a shift in the FOMC reaction function.”
From Goldman’s Jan Hatzius
FOMC Minutes Show the Elephant Was in the Room After All
BOTTOM LINE: Minutes from the December FOMC meeting suggest that the hawkish December FOMC statement and accompanying increase in median interest rate expectations were to some extent motivated by the possibility of easier fiscal policy – as opposed to a shift in the FOMC reaction function.

This post was published at Zero Hedge on Jan 4, 2017.