Former Fed Officer On What To Expect From Fed Minutes: Inflation outlook in light of stronger dollar, plunge in fuel prices, ongoing shortfalls of actual inflation

Former Federal Reserve Officer Thomas Simpson exclusively told Benzinga the minutes may also shed a little more light on the Fed's reading on the degree of slack in the labor market. “How distorted is the current reading of the unemployment rate — the extent of which it is understating slack?” he said. “If it is deemed to be substantial, then we have a ways to go before we approach the statutory mandate of maximum employment, implying no rush to tighten policy.” Simpson also said the minutes may affect attitudes regarding the timing of the first increase in the funds rate. “If they are not making progress in terms of underlying inflation moving upward toward their 2 percent goal, it will be hard to defend a hike in the target for the federal funds rate,” he said.