Here is an extremely short summary of the minutes that was released August 17, 2022 regarding the FOMC meeting July 26-27, 2022.
The key Bullet points to take away:
- Fed agreed on the .75% hike for last month as they are focused on front loading these hikes
- They see inflation conditions cooling which is a good sign. They did not see this before.
- They expect to raise rates .50% in September
'Looking ahead to the Fed’s Sept. 20-21 meeting, it’s unclear whether there will be a third consecutive 0.75 percentage point rate hike. Members concurred that the rapid move from near zero rates earlier this year to what they consider a neutral stance had helped the bolster the FOMC’s credibility with regard to bringing inflation back to the 2% target and contributed to a broader tightening of financial conditions.
And while they expect to raise rates into restrictive territory in the near term, the minutes said that “many participants remarked that, in view of the constantly changing nature of the economic environment and the existence of long and variable lags in monetary policy’s effect on the economy, there was also a risk that the Committee could tighten the stance of policy by more than necessary to restore price stability.”
Together, the concerns surrounding a policy overshoot and inflation not sufficiently falling toward the Fed’s 2% target mean “markets will likely expect the pace of tightening will slow in the upcoming FOMC meetings,” said Jeffrey Roach, chief economist for LPL Financial. “The FOMC will likely increase rates by 0.50% at the September meeting, barring any surprises in the upcoming economic data.”' - Brian Hershberg
For further and more in depth reading please check out these two links below.
Minutes of the Federal Open Market Committee July 26–27, 2022
Decisions Regarding Monetary Policy Implementation