Mea Culpa Minutes

Mea Culpa Minutes

Minutes of the Fed's June policy meeting, released on Wednesday, skewed hawkish. That's not terribly surprising. After all, the outcome of last month's meeting was a 75bps rate hike, the largest since 1994. I called it a dramatic mea culpa. The gathering was remarkable for the extent to which policymakers received information that changed the outcome during the pre-meeting quiet period. A red-hot CPI report followed by a disconcerting uptick in longer-term inflation expectations accompanying t
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4 thoughts on “Mea Culpa Minutes

  1. What to make of today’s action? Do investors not understand that any strength in the tape at this juncture will only cause the Fed to be more aggressive with respect to rate hikes?

  2. ““Many participants judged that a significant risk now facing the Committee was that elevated inflation could become entrenched if the public began to question the resolve of the Committee to adjust the stance of policy as warranted,” the minutes said.”

    Outside of our world, how many people are even aware of what they are doing? The FOMC is taking themselves too seriously. Sadly so for many of the same cadre of uniformed citizenry who will be the victims of the Fed’s efforts to save face.

  3. It could be argued that 2% inflation was just a convenient arrangement of the numbers to accommodate other policy ends and the 8.6% was the reality when some variables all went wrong and the Cat got out of the Bag . Geopolitics is a byproduct of distorted policy decisions .

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