- We are attentive to the increase in longer-term yields
- Higher rates can have implications for monetary policy but would need to be persistent
- Higher yields are being reflected in the market and having an effect on borrowing
- It does not appear that policy expectations are driving rates
- We have not made any decisions on future meetings
- Going into the December meeting, we'll get 2 more jobs and inflation reports
- Will look at all things into December but the idea that it's difficult to re-start hikes after stopping, it's just not true
- Decision for today was this meeting only
- The staff did not put a recession back into the forecast
- We're not thinking about rate cuts or talking about rate cuts
- The question we are asking is: Should we hike more?
- We are proceeding carefully
- It feels like the risks are more two-sided now around inflation
- Labor demand is clearly very strong but we've seen supply of workers come online
- It's not clear that the conflict in the Middle East is on track to have an economic impact on the USA
There was a dip in risk trades on the comments that kept December on the table. Did people really think that the Fed was going to explicitly move to the sidelines after +4.9% GDP?
Update: Evidently that was the dip to buy. S&P 500 now at the highs, up 1.3%.