FOMC Minutes Release: Key Statements, Scratch The Gold Scalp

Today the meeting table sat empty, but the FOMC still made a few waves. The dialogue between members showed differing viewpoints on the balance sheet and inflation.

Even Though The Conference Room Sat Empty, The FOMC Still Grabbed Headlines

Here are the key statements from the minutes, short and sweet:

• A majority of FOMC members agreed that U.S. inflation would gradually rise to their 2% target during the intermediate-term.

• Several members contended that inflation may stay below 2% for longer than expected.

• No specification of when the FED is to reduce its balance sheet.

• The FOMC upgraded its assessment of financial risk to “elevated” from “notable.”

It is tough to interpret such broad statements accurately. Typically, the FED likes a bit of mystery surrounding future announcements. Today’s vague minutes' release is a prime example of that.

The upgrade of financial risk to “elevated” looks to be a commentary on the current U.S. equities bubble. When taken with a majority calling for 2% inflation, the call for increased rates in September looks to be intact.

Gold Scalp Update

December gold futures have rallied towards yesterday’s high on the FOMC release. This effectively takes our earlier scalp out of play.

So it goes in trading. All we can do is be prepared and capitalize when opportunity knocks.