Oct 13, 2022
VOT Research Desk
The minutes of the Federal Open Market Committee’s meeting in September have been made public. Fed policymakers came to the conclusion that in order to decrease the high inflation, they would need to adopt and maintain a more restrictive monetary stance.
Many participants voiced their opinions about the government financing stream needed to accomplish committee goals. Many participants said it would be reasonable to maintain the policy at its current degree of restriction for a while once it had reached that point.
Several participants projected that dangers would become more complex as regulations tightened. The necessity of maintaining a restricted position for as long is required was stressed by a number of participants.
Officials intend to raise interest rates despite a deteriorating labor market.
These minutes may be seen as being somewhat less hawkish than the Fed speakers’ rhetoric and leaning in the direction of a pivot. On running back The US inflation statistics on Thursday will now draw the most of the focus.
The dollar gained further ground on Wednesday morning after US producer prices rose more than anticipated in September, especially versus the yen, where the market is paying the most attention. In spite of the estimate calling for a 0.2% increase, the producer price index for final demand increased by 0.4%. The PPI grew 8.5% over the course of the previous 12 months, following an 8.7% gain in August.
Following the US PPI data, the greenback rose as high as 146.88 yen. The DXy index has reached a peak of 113.59 ahead of the FOMC minutes. USD/JPY remains near its strongest level since August 1998.
It was last up 0.7% at 146.84, marking a fifth straight session of gains to a high of 146.09 so far. However, there is a hint of downside pressure coming through now that the markets are digesting the minutes
