Zeev's Turnips Patch-No Politics (ZEEV)

[wstera2]

15:13 ET FOMC Minutes : The May FOMC minutes reveal the Fed's concerns regarding disinflation risk as the committee saw higher risk given the level of excess industrial capacity. The disinflation concerns were softened by the weak dollar (higher import costs) as the tax cuts and low interest rates provided impetus for a stronger economy. The uncertainty surrounded the timing and severity of an upturn was the chief economic concern given the lack of business confidence which continues to restrain investment. As opposed to yesterday's policy dissent (Parry) in favor of a stronger ease the May discussion included two members who preferred a balanced directive rather than the weakness tied to disinflation risk.