FOMC Minutes Show The Fed Is Ready To Pause Rate Cuts If Necessary

On November 26, 2024, the Federal Reserve released the minutes of the Federal Open Market Committee meeting that was held on November 6-7, 2024.

The Minutes showed that risks to the Committee’s employment and inflation targets remained roughly in balance.

Importantly, some participants noted that “the Committee could pause its easing of the policy rate and hold it at a restrictive level if inflation remained elevated.”

Overall, the Minutes did not contain big surprises. The Fed reiterated that it would continue to evaluate the economic data and move accordingly, meeting by meeting.

Treasury yields were mostly unchanged as bond traders reacted to FOMC Minutes.

U.S. Dollar Index moved higher after the release of FOMC Minutes. Traders focused on the potential pause in rate cuts. The recent inflation data was worrisome, so the market may start to price in a more hawkish Fed. Currently, U.S. Dollar Index is trying to settle above the 107.10 level.

Gold settled near the $2625 level. Strong dollar is bearish for gold. In addition, gold traders focus on the ceasefire in the Middle East.

SP500  climbed above the 6015 level as traders focused on FOMC Minutes.

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