October 29-30 4 FOMC minutes: "Material.........>

FED: October 29-30 4 FOMC minutes: "Material Reassessment"

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- FOMC members said that a patient approach to policy adjustment is 

likely, and "policy was not on a preset course and could change if 

developments emerged that led to a material reassessment of the 

economic outlook."

- Many officials see rates steady after October cut, barring "material 

reassessment"  

- Participants agreed that the labor market had remained strong,

economic activity had risen at a moderate pace, and inflation reaching 

the symmetric 2% objective is the most likely outcome. 

- Participants also said risks to the economic outlook remained tilted 

to the downside, while some risks have eased a bit including trade 

tensions.

- Several participants noted a modest easing of policy would align the 

target range with a variety of indicators and estimates including the 

netral rate of interest and the slope of the yield curve. 

- Members said a standing repo facility would be useful but faces 

concerns over stigma, where to set rates, and whether a facility would 

increase the risk that some institutions may take on an undesirably high 

amount of liquidity risk. 

- Members on Oct 4 call discussed the repo markets with some suggesting 

boosting reserves to the early-September amount, others suggesting 

higher levels, and some suggesting a standing repo facility. Other 

participants suggested a broad discussion on the factors that affect the 

level and volatility of reserves. Members expressed concern about the 

year-end and April 2020 tax season, with associated reductions in 

reserves around that time.