Federal Reserve policymakers agree that more economic data is needed before raising interest rates, although some see a need to tighten policy soon, according to the minutes from the U.S. central bank's July 26-27 policy meeting.
The minutes, which were released on Wednesday, showed that members of the rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook and labor market.
"Some ... members anticipated that economic conditions would soon warrant taking another step in removing policy accommodation," the Fed said in the minutes.
Several Fed policymakers, however, said a slowdown in the future pace of hiring would argue against a near-term hike, and members of the FOMC said they wanted to "leave their policy options open."
The U.S. dollar strengthened after the release of the minutes, while U.S. stocks and prices of shorter-dated U.S. Treasuries pared losses. Fed funds futures showed little change in bets on when the Fed will lift rates, with investors still expecting the next rate increase to likely come in December.
St. Louis Federal Reserve Bank president James Bullard said he does not put much importance on when the Fed next raises interest rates, but prefer it come after positive news and in particular evidence that economic growth is rebounding from its weak start this year.
The dollar sagged on Thursday after minutes from the Federal Reserve's July meeting showed more policy members opposed a near-term rate hike than supported it.
The minutes showed "several" policymakers said a slowdown in the future pace of hiring would argue against a near-term hike
even as members of the rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook.
Oil prices dipped in early trading on Thursday as the prospect of record Saudi output weighed on markets and as traders cashed in on profits following an almost uninterrupted price rally this month of nearly 20 percent.
International Brent crude oil futures were trading at $49.67 per barrel at 0050 GMT, down 18 cents from their last close.
Traders said the price dip was due to profit taking following a strong rally this month, and as traders priced in the prospect of another production record from top exporter Saudi Arabia.
Moody's Investors Service revised its outlook on the world's largest emerging market economies upward for 2016 and 2017, the ratings agency announced on Wednesday, pegging growth for G20 emerging markets at 4.4 percent this year and 5 percent for 2017.
Analysts at Moody's said in a research note they expect growth in emerging markets to stabilize overall, but forecast increased growth for some countries and a turn lower for others.
Moody's revised upwards its macro outlook for Brazil, Russia and China. Turkey and South Africa were seen growing less than previously expected.
Reference: Reuters
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