FOMC MINUTES: A couple of participants stated that they favored ending the Committee's net asset purchases sooner to send an even stronger signal that the Committee was committed to bringing down inflation.

Policy

Inflation

via Federal reserve

Analysis details (19:21)

The minutes have seen little new information that markets were not aware of. The pick-up in stocks and Treasuries is likely a function of the lack of hawkish surprises, rather than outright dovishness. We did not get any clarity on a 50bps rate liftoff, nor did we get much new regarding balance sheet reduction rather than its expected by "a number" of participants "later this year". There is some attention on the comment that the Fed Funds rate could increase at a faster pace than the post-2015 period, but given where markets are priced and the recent Fed speak projections, that's not so surprising. On tapering, however there are a "couple" who favored ending net asset purchases sooner. The minutes also reinforced the data dependence mode from the Fed, particularly around inflation where "most" said "if inflation does not move down as they expect", it would be appropriate to "remove policy accommodation at a faster pace than they currently anticipate".

16 Feb 2022 - 19:02- Fixed IncomeData- Source: Fed

Fixed IncomeInflationMonetary PolicyFederal ReserveCentral BankFederal CorpUnited StatesFOMCHawkAsian SessionData

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