Wall Street Journal (WSJ) reporter Nick Timiraos, who is recognized by the market as the Fed’s megaphone, highlighted some of the “words” in the Fed’s November meeting minutes on Wednesday (23rd), highlighting that the Fed is internally discussing The risks to growth and financial stability that rapid policy tightening could pose are debated.
Minutes of the Federal Open Market Committee (FOMC) meeting showed thatSubstantial majority Fed officials said a slower pace of rate hikes may soon be appropriate, even as they acknowledged the central bank has made little visible progress in fighting inflation.
The minutes of the meeting stated that althoughsome (a few) Slower rate hikes could reduce risks to financial system, officials saysome other (a few other) Officials said any slowdown in the Fed’s rate hikes should wait for more concrete signs that inflationary pressures are clearly fading.
many (a number of) Officials noted that the recent turmoil in the U.K. government bond market underscored the value of U.S. government bond market resilience.Several (several) Officials pointed to risks posed by non-bank financial institutions whose hidden leverage could amplify shocks to markets amid a rapid tightening of global monetary policy.
also,Several (various) Officials warned that end-point rates could rise next year to slightly higher levels than previously expected.many Officials, there is significant uncertainty about the endpoint rates needed to achieve the FOMC’s target, which will depend in part on incoming data.
Timiraos tweeted on Wednesday that, in line with the slower pace of rate hikes“substantial majority”the opposite word is“a few”a small number of people think that slowing down the pace of interest rate hikes will wait until the interest rate clearly rises to a restrictive level.
Timiraos also emphasized that meeting minutes use a non-quantitative“Various”to describe officials who believe the final federal funds rate may be higher than expected in September.
Ellen Meade, a senior adviser to the Federal Reserve and an economist at Duke University, pointed out that,“Various”The term is one that the FOMC has rarely used this year, when ambiguity is required.If use“several”If you use the term , that’s not a strong message, so the Fed needs to blur it out.
Brian Jacobsen, senior investment strategist at Allspring Global Investments, pointed out that the outlook for the Fed’s monetary policy is“several”and“Various”Use a trade-off between words.onlySeveral (various) Officials believe they should raise their terminal rate forecasts, whileseveral Officials see a scenario of rapid policy tightening raising the risk of financial instability.