Fed gave no indication of possible rate cuts at last meeting, minutes show

Since the last FOMC meeting, on November 1st, the dollar has tumbled over 3% sending stocks, bonds, and bitcoin all higher (and gold, though only marginally)...

Perhaps most notably, since The Fed highlighted the fact that the market "was doing its job" (by tightening financial conditions), US macro data has serially disappointed and financial conditions have loosened dramatically...

FedSpeak has been hawkish since The Minutes: Applying Bloomberg Economics’ natural language processing model to Fedspeak, recent committee statements still indicate a hawkish tilt — though moving toward neutral.

This primarily reflects members seeking to transmit caution and convey a higher-for-longer stance.

So, what do The Minutes show?

These are the key takeaways from minutes of the Fed's latest meeting:

"All" officials supported the decision to hold the benchmark rate in a 5.25%-5.5% target range, indicating the broader 19-member Federal Open Market Committee was also united, in addition to the 12-0 decision among voting members.
The minutes also make it clear that even if the Fed isn’t hiking, policymakers want to keep rates high until they are convinced inflation is under control.
Policymakers agreed that the Fed “was in a position to proceed carefully” on whether to hike again and should condition further tightening on whether sufficient progress has been made in bringing down inflation.
All officials judged it would be appropriate to keep rates at a level restricting the economy “for some time until inflation is clearly moving down sustainably” toward the Fed’s 2% inflation goal.
Most policymakers saw the risks to inflation as weighted to the upside. $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$

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efficentupup

True and timely

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