FOMC meeting minutes: A few participants favored raising rates by 50 basis points

• A few participants favored raising rates by 50 basis points
• All participants favored a 25 basis point Basis point A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' Read this Term hike
• All participants agreed more rate hikes needed to achieve federal open market committee's job, inflation objectives
• Restrictive monetary policy needed until Fed confident inflation falling to 2%, added that process likely to take some time
• All participants favored further Fed balance sheet reductions under current plan
• Uncertainty associated with outlooks for economy, job market inflation was high
• Risks to economic outlook weighed to the downside
• Upside risks for inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, including China's economic reopening and Russia's war in Ukraine
• Uncertainty associated with outlooks for economy, job market inflation was high
• Job market very tight, labor demand outstripping available supply
• Some participants saw elevated prospect of recession in 2023
• Continued tight labor market would contribute upward pressure to inflation
• Inflation in the last three months has eased, but they need to see more progress
• Drawn out US debt limit process could pose significant risks to financial system, economy
• Some members acknowledge financial conditions has eased of late
• Anticipated that consumption would likely grow at a subdued rate in 2022

In the markets:

• Dow Industrial Average up 101 points or 0.31%
• S&P index up 19.0 points or 0.47%
• NASDAQ index up 86.71.0.76 percent
• Russell 2000 up 14.86 points or 0.79%

in the debt market:

• 2 year yield 4.675% -5.2 basis points
• 5 year yield 4.133% -4.3 basis points
• 10 year yield 3.912% -4.4 basis points
• 30 year 3.924% -5.0 basis points