U.S. equities are under pressure on Thursday along with the U.S. dollar following the release of yesterday’s Fed minutes for July combined alongside weak oil prices that reflects a slower growth outlook in China and a surprising rise of U.S. crude inventories last week.
The Fed minutes released yesterday showed Fed members are in no rush to begin raising interest rates in September when some economists were expecting the Fed to begin shifting their monetary policy of holding interest rates at historic lows with the federal funds rate.
“The Committee concluded that, although it had seen further progress, the economic conditions warranting an increase in the target range for the federal funds rate had not yet been met. Members generally agreed that additional information on the outlook would be necessary before deciding to implement an increase in the target range” the statement reads.
The Fed minutes also showed that some Fed members continued to see downside risks to inflation from the possibility of further dollar appreciation and declines in commodity prices.
Yesterday Nymex crude dropped 4.3 percent in the trading session and reached levels not seen since March 2009 following a crude inventory report that showed U.S. commercial inventories increased by 2.6 million barrels last week.