‘Substantial majority” of Fed officers see fee hikes slowing ‘quickly,’ -minutes By Reuters

NEW YORK (Reuters) – A “substantial majority” of policymakers on the Federal Reserve’s assembly early this month agreed it could “doubtless quickly be applicable” to gradual the tempo of rate of interest hikes as debate broadened over the implications of the U.S. central financial institution’s fast tightening of financial coverage, in accordance with the minutes from the session.

MARKET REACTION:

STOCKS: U.S. shares rose after the Fed minutes.BONDS: U.S. Treasury two-year, 10-year yields slipped.FOREX: The greenback prolonged losses versus the yen and euro.

COMMENTS:

MICHAEL JAMES, MANAGING DIRECTOR OF EQUITY TRADING AT WEDBUSH SECURITIES, LOS ANGELES

    “A number of Fed governors indicated a slowing within the tempo of fee hikes, which is just about precisely what fairness markets wanted to listen to. They did not say they are going to be pausing. Merely the truth that they are going to be slowing the tempo confirms what the vast majority of individuals have been hoping to see. That is why you are seeing an fairness spike initially. Clearly, we’ll see the place issues go within the subsequent two hours.”

    “What fairness markets wanted to see for the current power to proceed was what we bought from the minutes.”