Many Fed officials have voiced support for the need to control the pace of interest rate hikes, as indicated by the minutes of the central bank’s Nov. 1-2 meeting.
Only a few of these officials stressed the need to raise the key interest rate further. Since the last Fed meeting, investors have seen a slew of economic data that has somewhat allayed inflation fears, bolstering the case for a smaller interest rate hike.
Infrastructure Capital Management’s Came Hatfield said: “The meeting minutes express a favorable position, as they acknowledge declining consumer demand and challenging global financial and economic conditions.”
However, some investors believe that the minutes of the meeting have brought nothing new and that markets are overreacting to what they perceive as a change in tone.
