Fed minutes have markets dipping, traders calling for more rate hikes
Minutes from the Federal Reserve’s June policy-setting meeting have market s in the red as investors speculate how many more rate hikes might be up central banker’s sleeves. The pace of rate hikes is expected to slow, central bankers said on Wednesday, but hikes nonetheless should be expected. “Many also noted that, after rapidly tightening the stance of monetary policy last year, the Committee had slowed the pace of tightening and that a further moderation in the pace of policy firming was appropriate in order to provide additional time to observe the effects of cumulative tightening and assess their implications for policy,” the minutes read. Minutes from last month show that central bankers are still concerned about persistent inflation, and what some traders were hoping would be a conclusion to the recent era of tight monetary policy might simply be a pause. In June, committee members elected to keep rates the same, marking the central bank’s first rate increase pause i...