💥US500 fell slightly after Minutes

Markets unimpressed by latest FOMC minutes

Minutes from the latest FOMC meeting were hawkish but investors were expecting this narrative. The document did not present many new information regarding further steps that the FED intends to take regarding fiscal policy. Almost all FOMC participants agreed that it was appropriate to raise the target range for the federal funds rate by 25bps at the first monetary policy meeting of 2023, although a few officials favored raising it by 50bps. Minutes release taking into account hawkish tone led to small pullback on equity markets and appreciation of USD dollar.

Below you can find key takeaways from the document:

• A few participants favored raising rates by 50 basis points
• Several participants advocated raising interest rates by 50 basis points.
• Some participants predicted an increase in the likelihood of a recession in 2023.
•  Participants stated that the continued tight job market would contribute upward pressure to inflation.
• Participants said that inflation in last three months has eased, but they need to see more progress.
• All participants agreed more rate hikes needed to achieve federal open market committee's job, inflation objectives.
• Upside risks for inflation, including China's economic reopening and Russia's war in Ukraine.

US500 pulled back slightly after today's Minutes, however continues to trade above major support at 4000 pts. Source: xStation5