FAST FIVE: "The Statement Comes Across As Dovish" – Wall Street Reacts To FOMC Minutes
We think Powell belongs to this latter group.” The market agrees with the dovish take and stocks have jumped to session highs while the market implied Fed Funds curve has dipped on the outer end, Here are some of the initial reactions to the FOMC Minutes: Chris Low, FHN Financial “The two big headlines are most Fed officials favor slower tightening pace soon and various Fed officials see higher peak rates.
But the central bank can't afford to let markets just rip higher.” Doug Fincher, hedge fund manager of Ionic Capital Management: “Amazed at the magnitude of tightening in credit spreads over the weeks since the CPI print.
Any major reaction off of the minutes is probably an overreaction.” Joe Gilbert, portfolio manager at Integrity Asset Management “Keeping in mind that these minutes are before the October CPI print, it is constructive that Fed participants were becoming increasingly aware of the lagged impact of all the rate hikes this year.
There's widespread agreement within the committee to slow the pace of rate hikes soon, with only 'a few' preferring to wait until the policy stance is more clearly in restrictive territory.
We think Powell belongs to this latter group.” Tyler Durden Wed, 11/23/2022 – 15:23.