After a dovish stance at the last meeting, the Federal Open Market Committee (FOMC) released minutes from its two-day January meeting on Wednesday.
Following four rate hikes in 2018, the Fed announced last month that it would pause and keep benchmark federal funds rates steady at the 2.25% to 2.5% target range, but it was unclear how long the central bank planned on doing so.
Federal Reserve officials in a closed-door discussion last month discussed halt a 2017 plan to shrink the central bank's nearly $4 trillion balance sheet, according to meeting minutes released Wednesday.
Minutes from the Federal Open Market Committee's Jan. 29-30 meeting showed that the move was proposed by Fed Chairman Jerome Powell. "Following the discussion, the chairman proposed that the committee communicate its intentions regarding monetary policy implementation and its willingness to adjust the details of its balance sheet normalization program," the minutes read. All members agreed.
The central bankers also said that U.S. economic growth seemed to remain on track, but that the FOMC would be "patient" with raising interest rates to stave off any inflation risks.
"Members continued to view sustained expansion of economic activity, strong labor market conditions and inflation near the committee's symmetric 2% objective as the most likely outcomes for the U.S. economy in the period ahead," according to the meeting minutes.
Pretty much all asset classes are reversing the trends they were at the last few weeks. The SP 500 index and Gold both reached new multi weeks highs in the aftermath of the release only to sharply reverse afterwards. EURUSD barely changed at 1.135.