Just-released Federal Reserve minutes from the April 28–29 meeting strike a more hawkish tone than the post-meeting press conference suggested.
With policymakers expressing greater anxiety about inflation, a growing number of members signaled more openness to interest rate hikes within their risk assessment framework.
Here’s the link: https://t.co/MayjxhT3X1
#economy #federalreserve #inflation #markets
Summary of Fed Chair Powell today:
1) He'll stay as Chair until a new chair is confirmed by Senate
2) He'll stay at Fed until criminal investigation is "truly over"
3) No rate cut today. Only 1 cut likely for 2026
4) No one knows impact of oil shock
5) This is NOT stagflation (in Powell's view). It's "nothing like 1970s"
6) There's "effectively ZERO job growth," but he doesn't see that as troubling because no labor supply growth
Modest dovish repricing of the GBP OIS curve after the LIFFE open...now 10bp of easing discounted by y/e vs. 7bp pre-release...next 25bp cut now fully discounted for Mar '26 vs. Apr earlier, with a 95% chance of a Feb move vs. 72% before the figures
Market value of Mastercard: $502 billion
Market value of ExxonMobil: $484 billion
Market value of Bank of America: $355 billion
Market value of CocaCola: $275 billion
NVIDIA's loss of market value today: $560 billion
*FED'S WALLER: SHOULD PROCEED WITH MORE CAUTION ON PACE OF CUTS
*WALLER: DATA WARRANT MOVING TO NEUTRAL AT `DELIBERATE PACE'
*WALLER: 'CONSIDERABLE' ROOM FOR CUTTING ABOVE NEUTRAL RATE
*WALLER: HURRICANES, STRIKE COULD REDUCE OCT. PAYROLLS BY 100K