* FOMC MEETING MINUTES (December 2016)
Almost all Federal Reserve policymakers thought the economy could grow more quickly because of fiscal stimulus under the Trump administration and many were eyeing faster interest rate increases, minutes from the central bank's December meeting showed.
The minutes, released on Wednesday, showed how broadly views within the Fed are shifting in response to President-elect Donald Trump's promises of tax cuts, infrastructure spending and deregulation.
Policymakers were clear that the outlook for those policies remained uncertain, but they could, if implemented, stoke higher inflation which would lead the central bank to raise borrowing costs more aggressively.
"About half of the participants incorporated an assumption of more expansionary fiscal policy in their forecasts," according to the minutes from the Dec. 13-14 meeting, referring to the 17 policymakers who participated.
"Almost all also indicated that the upside risks to their forecasts for economic growth had increased," the minutes stated.
However, the minutes showed policymakers might signal an even more aggressive path of rate increases if inflationary pressures rose. Trump campaigned on promises to double America's pace of economic growth and "rebuild" the country's infrastructure.
* The dollar stepped further away from a 14-year peak against a basket of currencies on Thursday, as investors locked in gains from its two-month-old rally since Donald Trump won the U.S. presidential election.
The dollar's index against a basket of six major currencies .DXY =USD slipped to 102.20 after having hit a 14-year high of 103.82 on Tuesday, when a strong reading from a U.S. manufacturing survey boosted the U.S. currency.
The euro EUR= rose to $1.0524, having recovered from a 14-year low of $1.0340 touched on Tuesday.
The dollar slipped to 116.70 yen JPY= after having peaked at 118.605 on Tuesday, just shy of its 10-1/2-month high of 118.66 touched on Dec. 15.
* Oil prices rose nearly 2 percent on Wednesday on expectations U.S. crude inventories have dropped and on signs that the world's top oil exporters will stick to agreed output cuts that took effect this week.
Global benchmark Brent crude futures LCOc1 rose 99 cents, or 1.8 percent, to settle at $56.46 a barrel. U.S. West Texas Intermediate crude futures CLc1 gained 93 cents to end at $53.26 a barrel, also a 1.8 percent gain.
* In post-settlement trade, crude rose slightly after industry group the American Petroleum Institute reported that crude stockpiles fell 7.4 million barrels in the week ended Dec. 30.
Reference: Reuters
Thai
Eng