The market did not seem to have priced in early rate hikes and QT hints
FRB released the FOMC minutes early in the morning.
Today I want to follow the market's reaction to the FOMC minutes.
QT hints and an earlier rate hike should have been indicated at the December FOMC as well, but the market has continued its previously “optimistic” behavior with Christmas rallies and New Year rallies.
Whether purchases were supported by a looser policy due to balance sheet expansion being locked in until March, or whether inflation fears accelerated investment in goods, isn’t clear, but it seems the “flight to quality” that the speculative crowd associated with active buying has taken a hit.
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