FOMC Minutes: Forget About Raising Rates, Pal

The FOMC minutes were released at 2pm Wednesday and show a Fed hesitant to raise interest rates.

They want to see way more data.

“Members judged it appropriate to continue to leave their policy options open and maintain the flexibility to adjust the stance of policy based on incoming information,” the minutes said.

The Fed raised its benchmark federal-funds interest rate from near zero in December, and began the year expecting to nudge rates up four more times in quarter-percentage-point increments in 2016. It hasn’t moved because of worries about growth, hiring and turbulence overseas.

Some worries have receded, including whether markets would convulse after Britain’s June decision to leave the European Union.

“Participants generally agreed that the prompt recovery of financial markets following the Brexit vote and the pickup in job gains in June had alleviated two key uncertainties about the outlook,” the minutes said.

There hesitance to raise rates has been clear for many months.  They have no desire to hike rates and cause a recession, therefore they will not.

Investors can take comfort in knowing The Fed has their back and will keep USA markets propped up through the election cycle at the least.

FIMO cash to start chasing the tape in 3…2..1