🎲FOMC meeting minutes: Slower rate hikes in perspective🗽

Equity markets are encouraged by the Fed minutes which show a desire by many officials to start slowing down the pace of rate hikes in December. However, one should not see this as a form of dovish stance. 

🎯Some signs of inflation waning📊

Some officials acknowledged early progress in inflation cooling, given more restrictive financial conditions. FOMC members are said to be taking into account the cumulative effect of the federal fund rates as part of the consideration in moderating their rate hike trajectory. 

🍏Commitment to price stability🧮

The minutes continued to hammer the firm goal to pull the economy back to a 2% inflation level and are ready to tighten monetary conditions more than the initial plan if required to reach this goal. While some participants may feel that the Fed has been too aggressive, there is a general acknowledgement that more work is to be done to ensure progress is made. 

🍄More concrete signs before brake enforced💎

While the minutes did show some divisive stances, with some officials ready to take the pedal off a rate hike, others cautioned against pre-mature moves to help ensure the economy is on track towards price stability. 

Some cautious and sometimes aggressive stances reflect the two camps in the Fed as they faced unknown external forces of events in driving inflation with their blunt tools in affecting aggregate demand rather than the supply side of the economy. 

Pika World remains vigilant on any call on Fed pivot as the overall minutes still reflect a balanced and hawkish stance. 

📮What’s on the menu today?📖

The market is closed today and will resume half-day trading on Friday.