(Bloomberg) — Federal Reserve officers final month affirmed their resolve to convey down inflation and, in an unusually blunt warning to traders, cautioned in opposition to underestimating their will to maintain rates of interest excessive for a while.
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Going into the assembly, markets had been pricing in charge cuts within the second half of 2023. The tone of the minutes of the Federal Open Market Committee’s Dec. 13-14 gathering urged frustration that this was undermining the central financial institution’s efforts to convey value pressures underneath management.
Fed officers famous that “an unwarranted easing in financial conditions, especially if driven by a misperception by the public of the committee’s reaction function, would complicate the committee’s effort to restore price stability,” in accordance with the minutes launched in Washington on Wednesday.
US shares pared positive factors following the report, whereas the Fed policy-sensitive two-year Treasury yield rose and the greenback remained decrease. Pricing in…
2023-01-04 15:40:20 Fed Affirms Inflation Resolve, Pushes Back Against Rate-Cut Bets
Original from finance.yahoo.com