“With monetary policy approaching a sufficiently restrictive stance, participants emphasized that the level to which the Committee ultimately raised the target range for the federal funds rate, and the evolution of the policy stance thereafter, had become more important considerations for achieving the Committee’s goals than the pace of further increases in the target range,” the minutes said.
The discussion among officials has meant investors are expecting the Fed to hike by 50 basis points in December. That expectation has not convinced market commentators such as David Rosenberg that it’s yet time for a “celebration.”
“Everyone’s excited because the FOMC is going to slow the pace after a steady a diet of 75 beepers? So, going 50 basis points (and more!) into the most inverted yield curve since October 1981 is reason to be festive?” the leading economist tweeted on Wednesday.
