FOMC responses incoming (spoiler: plenty more tightening to come from the Federal Reserve)

ICYMI, the FOMC minutes and one Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term speaker on Wednesday:

• FOMC minutes: Most participants emphasized 'flexibility and optionality' on rates
• Feds Kashkari: Appropriate to continue interest rate hikes at least at the next few meetings

Respones coming in for around the place, this is the general gist:

Citi says that officials at the Federal Reserve are "clearly growing more uncomfortable with the market underpricing their likely policy path". Citi forecasts a 50bp rate hike at the next meeting, in February. ProjectMorgan Stanley the terminal rate at 5.25 - 5.50%.

Morgan Stanley's note says they see financial conditions being "too easy". A reflection of a "misperception among investors of the Fed's reaction function". MS say the implication is that as long as financial conditions are misaligned with the Fed's aims, "expect additional tightening".