Fundamental Comment

Fed members highlight importance to change monetary policy language


All participants agreed that both growth and inflation would rise in the coming months, adding to expectations that Fed would continue their rate hike path.

FOMC members voted unanimously to raising interest rates by 25 basis points last month.

"Almost all participants agreed that it remained appropriate to follow a gradual approach to raising the target range for the federal funds rate," Fed statement said.

"Participants generally saw the news on spending and the labor market over the past few quarters as being consistent with continued above-trend growth and a further strengthening in labor markets,"

Fed members highlighted the need to change the language related to the current monetary stance from "accommodative," which has been a standing description since the crisis-era policies were implemented, to "neutral or restraining."

Such a change would reflect a shift in policy from loose to tighten.

Also, Fed members expressed their optimism about the impact of the tax changes that took effect at the beginning of the year.

The only threat they talked about was the possibility of a trade war between the United States and China.

As of 18:32 GMT, the dollar index traded 0.03 percent lower at 89.29.

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