The Federal Reserve seems pretty pleased with how the U.S. economy is doing. Many Fed members think it could get even better in 2015.
The reason? Cheap gas.
According to the minutes, “the real economy may end up showing more momentum than anticipated” this year.
A few Fed members boldly predicted a “quite large” boost to American spending because of lower energy prices.
Stocks, which were broadly higher before the minutes came out, remained positive with the Dow up around 200 points. The yield on the benchmark 10-Year Treasury bond, which has recently fallen below 2%, remained just under that level.
The minutes showed that most central bankers were not terribly concerned about how plunging oil prices would hurt the global economy.
Fed chair Janet Yellen admitted as much during her press conference after the December meeting when she said lower oil prices are “something that’s certainly good for families, for households. It’s putting more money in their pockets.” She added that “it’s like a tax cut that boosts their spending power.”
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