- G10 Markets
- Fixed Income
- Foreign Exchange
- Emerging Markets
- MNI Research
- Global Macro
- Political Risk
- About Us
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.LATEST FROM POLICY:
- G10 MarketsG10 Markets
Real-time insight on key fixed income and fx markets.Launch MNI PodcastsFixed Income FI Market AnalysisCentral Bank PreviewsFI PiEurozone/UK Bond Auction CalendarEurozone/UK T-bill Auction CalendarUS Treasury Auction Calendar US$ Credit Supply Pipeline Fixed Income Technical Analysis EGB Issuance, Redemption and Cash Flow Matrix Gilt Week Ahead
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
Real-time insight of oil & gas markets
Reporting on key macro data at the time of release.LATEST FROM DATA:
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.Global Macro Central Bank PreviewsCentral Bank ReviewsBalance Sheet AnalysisInflation InsightGlobal IssuanceEurozoneUKUSOverviewGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction Calendar
- About Us
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.Free Access
MNI DATA FORECASTS: EZ Inflation, US Payrolls In Focus
MNI: 'A Few' FOMC Members Sought 50BP Hike- Minutes
Almost all Federal Reserve officials agreed it was time to step down the pace of rate hikes to a quarter point at their Jan 31-Feb.1 meeting but "a few" wanted to hike by 50 basis points to get sufficiently restrictive more quickly, minutes from the gathering published Wednesday showed.
There was no discussion of a pause in rate hikes despite hopes in financial markets that such deliberations had been in an integral part of the Fed's most recent meeting.
"Almost all participants agreed that it was appropriate to raise the target range for the federal funds rate 25 basis points at this meeting,” the report said. “A few participants stated that they favored raising the target range for the federal funds rate 50 basis points at this meeting or that they could have supported raising the target by that amount.”
Those who favored a 50 bp hike "noted that a larger increase would more quickly bring the target range close to the levels they believed would achieve a sufficiently restrictive stance.”
The Fed raised its official interest rate target range by a quarter percentage point to 4.50%-4.75%, reducing the size of the one-meeting rate increase from 2022's torrid pace.
Since then, strong readings on jobs and inflation have raised market expectations for the terminal funds rate up to around 5.3%, some 40 basis points higher this month and above the Fed's December median estimate of 5.1%. The Fed is expected to hike rates another 25 basis points in March but a couple of Fed presidents have said a 50 basis point move should not be ruled out.
"A number of participants observed that a policy stance that proved to be insufficiently restrictive could halt recent progress in moderating inflationary pressures, leading inflation to remain above the committee’s 2% objective for a longer period, and pose a risk of inflation expectations becoming unanchored," the minutes said.
The economy created over half a million jobs in January, raising questions about how much impact Fed tightening is having over unusually tight employment conditions.
CPI inflation eased last month but underlying signals pointed to persistence in many key sectors including services outside of housing, a strong emphasis of Fed Chair Jerome Powell. The headline consumer price index rose 6.4% while the core measure climbed 5.6%, the smallest 12-month rise since December 2021.
To read the full story
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.
Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.