USA pre-open: Stocks seen flat to lower ahead of FOMC minutes

06 July 2017, 12:05 | Isaac Mcdaniel

Mike Powell Getty Images

Mike Powell  Getty Images

US stocks and bonds were little changed Wednesday following the release of minutes from the Federal Reserve's June meeting that showed officials readying plans to start gradually shrinking the Fed's balance sheet in coming months.

Some Fed officials want to announce the beginning of the process "within a couple of months", according to minutes of the USA central bank's June meeting. A few committee members who supported the June increase "indicated that they were less comfortable" with the forecasts for additional hikes through the end of next year because of concerns that inflation would remain below the Fed's 2% annual target, the minutes said.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, cited his concern about weak inflation as a reason that he voted against a rate increase at the June meeting. Inflation, in particular, has proved hard to nudge closer to the Fed's 2 percent target, while in the first three months of the year the economy grew at a rate of only 1.4 percent.

The minutes recorded policymakers' deliberations at last month's meeting, when the central bank raised interest rates by a quarter of a point to a range of one-to-1.25%.

Members of the Federal Open Market Committee - the Fed's rate-setting panel - "generally reiterated" their support for continuing to gradually raise rates, according to the minutes.

After that meeting, the Fed announced it planned to start reducing the balance sheet sometime this year but provided no timetable.

Fed officials lowered their long-term projections for both inflation and the unemployment rate, while their projected path for interest rate increases remained mostly unchanged. Meanwhile, U.S. officials will soon confront the challenge of raising the debt ceiling to continue to fund the government.

Timberwolves trade Ricky Rubio to Jazz
He has two years left on his current contract at $14.1 million this coming season, and $14.8 million in the 2018-19 season. The deal was reported by the Associated Press just minutes after free agency's official 11 p.m. central start time.

Killed As Gulmarg Gondola Crashes Due To Heavy Winds
Two others who also lost their life in the mishap are Jahangir Ahmad Khanday, also a guide, and Farooq Ahmad Chopan . The Chief Minister expressed her grief and shock over the tragic accident and ordered a thorough investigation.

North Korea tests rocket engine linked to nuclear missile programme
It was the second such test of the SM-3 Block IIA interceptor, which is being developed by Raytheon. The test follows about a dozen missile launches this year, as well as three engine tests in March.

Cramer said he still expects to see a rate hike in September.

The Fed's next meeting is July 25-26.

She said the Fed eager to keep increasing interest rates at a gradual pace to avoid a situation in which it would need to raise rates more quickly to offset inflation, which could destabilize the economy.

Financial conditions were also debated at the meeting, with some participants arguing that "increased risk tolerance" among investors could be lifting asset prices.

Some Fed officials are anxious that investors are not responding to the recent rate increases.

In a press conference following the conclusion of the June meeting, Yellen attributed lower inflation in part to temporary factors, like one-off decreases in the prices for cell phone services and prescription drugs.

Some members were also concerned that there could be a build-up of risks to financial stability.

Other News

Trending Now

Sevilla player Iborra to join Leicester City
Leicester City have struck a deal for Sevilla captain Vicente Iborra with the midfielder set to move to the King Power Stadium for a £15million fee.

Here's How the Royal Family is Celebrating Princess Diana's Birthday
To mark the anniversary, the BBC will broadcast a special documentary about what happened the week after her fatal accident. William was just 15-years-old and Harry was 12 when Diana was killed in a Paris vehicle crash in 1997.

China won't bail out Trump on North Korea
Xi said he hoped the USA president will "properly handle" Taiwan issues in accordance with the "One China" principle. Trump said the relationship has broad prospects, with both countries having a wide spectrum of common interests.

Hong Kong in Photos: 1997 to 2017
Police calculate the number as being significantly lower, at a paltry 14,500. "The Chinese government will put more regulations". Liu's face featured on countless signs held aloft by marchers who called on China to release him to seek treatment overseas .

Zverev To Face Federer At Halle Open
Zverev, who beat Federer in the Halle semifinals last year, fell to 3-1 in finals this year. Zverev, a young rising star in men's singles, had a strong week at the tournament.

Facebook now has 2 Billion monthly users
Facebook's plan to connect people with like-minded fellows sounds like "a fine idea", she said. Facebook also has streaming deals with Major League Baseball and Major League Soccer.

Ham Radio Operators Compete In Williston
The Baltimore Sun reports that the operators set up a shop Saturday at two different locations in Howard County. More than 35,000 amateur radio operators across the country participated in last year's event.

'His politics were his religion,' congressman says of Hodgkinson
It emerged Hodgkinson had a social media page filled with criticism of Republicans and the Trump administration. President Trump delivered a videotaped statement , saying, "we will not be intimidated. the game will go on".

UAE says US, European guarantees needed to solve Gulf crisis
UAE minister also says if demands are not met the "alternative is not escalation", but the "parting of ways" . Although the demands have not officially been made public, they have been widely leaked.

Top 4 teams qualify for HWC 2018 in India
India did manage to create a few opening even as Malaysia fell back to defend the lead, but the strikers sprayed the shots wide. Though India were tipped as favourites to win, a stubborn Malaysian outfit kept India in the hunt the right from the beginning.