For the full text from the Meeting minutes CLICK HERE.

  • Substantial majority of participants at November meeting judged a slowing in the pace of the interest rate hikes would likely still be appropriate
  • a slower pace of rate hikes would better allow the FOMC to assess progress toward its goals given the uncertain lags around monetary policy
  • a few participants said slowing the pace of rate hikes could reduce the financial system risks; others that slowing should await more progress on inflation
  • with monetary policy approaching a sufficiently restrictive level, participants emphasized the final destination of Fed funds rate have become more important than pace
  • some participants remarked that more restrictive policy was consistent with risk management; some observed rising risk of over tightening
  • participants concurred there were very few signs of inflation pressures updating
  • participants generally noted that risks to the inflation outlook remain tilted to the upside
  • all participants agree that 75 basis point increase was appropriate
  • many participants noted significant uncertainty about ultimate level of Fed funds rate needed to tame inflation
  • many thought that terminal rate was higher than previously expected
  • participants observed the labor market remained tight; many noted that tentative signs it might be moving slowly toward better balance of supply and demand
  • despite elevated interest rate volatility in indications of strained liquidity conditions, functioning of the treasury security market have been orderly

Reactions by the market have

  • the US rate futures seeing a terminal rate of 5.03% in June

US stocks are higher:

  • Dow industrial average up 115 points or 0.33%
  • S&P index up 21.5 points or 0.54%
  • NASDAQ index up 103 points or 0.92%
  • Russell 2000 up 4.64 points or 0.25%

in the US debt market:

  • 2 year 4.48%, -3 point basis points
  • 10 year 3.713%, -4.5 basis points

in other markets:

  • Spot gold is trading up $9.30 or 0.56% at $1749.53
  • Silver is trading at $21.49 up $0.42
  • crude oil is trading at $77.76
  • bitcoin is trading at $16,593

in the Forex:

  • EURUSD traded just above its 200 day moving average 1.03969. The price reached the natural resistance level 1.04002 and backed off. It currently trades at 1.0389
  • USDJPY moved to a new session low of 139.428. The price moved below the low price from Friday at 139.615. There is a swing area below between 138.87 and 139.09.
  • The GBPUSD as backup testing the 50% midpoint of the 2022 trading range of 1.20499. Move both momentum would have traders looking toward the 200 day moving average at 1.21971 over time.