Minutes of the FOMC Rate Decision were released last night. The minutes did not offer anything surprising.
Participants generally observed that maintaining a restrictive policy stance for a sustained period until inflation is clearly on a path toward 2 percent is appropriate from a risk-management perspective. In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy. Participants generally indicated that upside risks to the inflation outlook remained a key factor shaping the outlook for policy. No participants anticipated that it would be appropriate to begin reducing the federal funds rate target in 2023.
Market pricing for Fed Funds rate is dovish than the statement of economic projections which expects Fed funds rate in 2023 at 5.10%.
US Yields closed as 2Y at 4.355% and 10Y at 3.686% with 2x10 spread at 67 bps
US Mfg PMI dipped for the second consecutive month below the 50 reading.
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