Fed Reserve Projects 50 BPS Rate Hike in December FOMC meeting | FOMC meeting minutes released #fed
Channel: Stock Docta' Trading
Date: 2022-11-23

#fed #fomc #meetingminutes #jeromepowell 
The Federal Reserve meeting. Minutes are just about to come out. Now, what I find is the market's going to have any sort of significant reaction. It's probably going to react well before any of us have the time to download the PDF for the HTML version and actually discern what was said within the many minutes notes. First things first before we break it down.

We're just going to be here. Wait and watch how the markets react to the minutes. We'll pop in as soon as it's ready. And while we wait for this action to set up so far for SPI, for example, we're sitting right around 480, so 400.8. And we've been riding around in the sage gently going up, up, up. But you can see that during the past hour or two, we've had a little bit pullback.

I think it might be just a little bit of a hesitance from our bullish trend in terms of this news. No one knows if anything really significant is going to be in there. So let's take a look. We've got about 30 more seconds here. Let's see what's going to happen. My personal opinion is this is going to be most likely a big old nothing burger.

They'll discuss a little bit if they have any discussion about quantitative tightening at a faster pace, that could have an effect on the markets. That looks like they're out right now. And the initial reaction is towards the upside. We're moving up to the 401 50. And the thing about the meeting notes is sometimes it does take investors a little bit of time to really discern what is in those notes.

So now 30 seconds into this reaction and it seems pretty muted at first. Let's go ahead and see if the meeting minutes are available. Okay. There's a big pull towards the negative direction. So now we've developed the channel or we've swung up as high as 401 70 and we came all the way down to its 15/2 VWAP, which is 422.

Right now we're firing off to the upside right there, so we're still got a bit of a swing going on. Let's check or balance sheet. Household sector balance sheets were fine. The Federal Reserve's balance sheet participants observed that the policy rate hike at the meeting was another step forward toward making the committee's monetary policy stance sufficiently restrictive to help ease supply and demand imbalances and to return inflation to 2% over time.

As described in the plans for reducing the size of the Federal Reserve's balance sheet that were issued in May, all members affirmed that they were strongly committed to returning inflation to its 2% objective. Members agreed that in assessing the appropriate stance to monetary policy, they would continue to monitor the implications of incoming information for the outlook of the economy.

They would have to be prepared to adjust the stance of monetary policy. So this is just leaving it wide open. If the no, not their 50 basis points viewed. Most respondents to the Open Market Desk survey viewed a 50 basis point increase in the target rate for the federal funds at the December meeting is the most likely outcome.

So that will be bullish news for the markets and probably you're seeing that right now. Yeah, we're seeing a bullish trend on the markets. They're pushing towards the upside because there's going to be not a 75 basis point in December. Most likely, it's probably going to be 50 basis points no matter what the CPI data looks like unless it's extremely hot.

All right. So that's it. Let's get this information up and out. Now, you know why the market reacted the way it did. I had a beautiful day trading people.



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