Minutes from the most recent Federal Open Market Committee gathering showed members fairly confident that "strong" economic growth will persistent at least for the months to come. Officials said it would "likely soon be appropriate to take another step in removing policy accommodation," an indicator for a looming rate hike that is widely expected by markets.
"The topics discussed at the August FOMC meeting signaled that the Fed has made progress in it's rate hiking campaign, but it is starting to see some downside risks," said Ian Lyngen, head of U.S. rate strategy at BMO Capital Markets. "
From Thursday to Saturday, leading central bankers are gathered in Jackson Hole, Wyoming, to discuss the future of monetary policy and the ever-changing market structure. Fed Chair Jerome Powell is due to speak to attendees on Friday. The economic symposium and Fed minutes came amid tension between the central bank and the U.S. administration.
On Monday, President Donald Trump told Reuters that he would continue to criticize the Federal Reserve if it persisted with raising interest rates. He added that the Fed should do "what's good for the country."
Trade talks with China are set to kick off in Washington today, with a nine-member delegation from Beijing speaking to U.S. officials in order to find some way of relieving friction between the two nations. If the meeting goes well, this could lead to a future meeting between presidents Donald Trump and Xi Jinping. Trump, however, isn't expecting much progress from the talks.