Key Insights
- FOMC Minutes indicate that Fed is prepared to raise rates if necessary.
- Some Fed members are worried that Fed may face a tradeoff between its dual mandate goals.
- Traders cut their bets on dovish Fed, which is bullish for U.S. dollar and bearish for stocks.
On January 3, 2024, Fed released FOMC Minutes. This was a long-awaited release as markets have already started to price in aggressive rate hikes from the Fed in the first half of 2024.
The minutes indicated that Fed officials remained prepared to raise rates further if appropriate. Today, Fed’s Barkin confirmed this view, noting that demand remained strong.
Interestingly, several officials believed that Fed may have to keep the federal funds rate at current levels for longer than was anticipated by markets.
Fed officials believed that “it would…
Read More
