Investors are awaiting the minutes of the last meeting of the Federal Reserve Board, scheduled for today at 10:00 GMT+4, to understand exactly what Federal policymakers are thinking regarding economic conditions and monetary policy.
The report covers all factors that influenced the Fed’s last interest rate decision, along with expectations related to economic growth and inflation rates. As a result, the meeting minutes is an important tool for markets to understand what could be to come for the Fed’s monetary policy path.
After a year of continuous policy tightening, in which the Federal Reserve raised interest rates to 5.25%, investors are anticipating the risks of persistent high interest rates for longer than previously expected. This also comes with fears of exceeding the final interest rate ceiling to reach levels higher than what the markets are currently pricing in.
The minutes are scheduled 8 times each year, and are published 3 weeks after the Fed’s last interest rate announcement. Therefore, fluctuations are expected in the financial markets coinciding with the release of the minutes.
It should be noted that traders have different ideas and convictions in the way they interpret the information issued, and therefore prices cannot move 100% according to that information.
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