NEW YORK (Reuters) – A “substantial majority” of policymakers at the Federal Reserve meeting earlier this month agreed that a slowdown in the pace of rate hikes “may soon be appropriate” as the debate over the impact of raising rates widened, according to According to the minutes of the meeting, the US central bank quickly tightened monetary policy.
STOCKS: US stocks rise after Fed minutes. BONDS: Two-Year U.S. Treasury Note, -year yield slips. FOREX: The dollar extended losses against the yen and euro.
PETER CARDILLO, Chief Market Economist, Spartan Capital Securities, New York
“No big surprises. The point is that officials say terminal rates may be higher than previously expected, but markets already know that. Sustained rates are appropriate. Markets know that.”
“Most support slower future rate hikes , which may come as a bit of a surprise…As you can see, the market has gained a little momentum since the minutes were released.”
MICHAEL JAMES, MANAGING DIRECTOR OF EQUITY TRADING, WEDBUSH SECURITIES , Los Angeles
“Multiple Fed governors say the economy is slowing in the pace of rate hikes, which is pretty much exactly what the stock market needs to hear. They haven’t said they’ll pause … the mere fact that they’re going to slow down confirms what most people have been hoping to see. That’s why you’re seeing stocks spike initially. Obviously we’ll see in the next two hours Until things go.”
“For the recent strength to continue, what the stock market needs to see is what we’re getting from the minutes.”