Market analysis: information that may be regarded as hawks in the minutes of the Federal Reserve meeting will be further amplified

According to reports, Michael Hewson, chief market analyst at CMC Markets, wrote that although the Federal Reserve Chairman Powell insisted at the press conference after the February meeting that the Federal Reserve would further raise interest rates and that the Federal Reserve would not consider reducing interest rates this year, he failed to categorically refute the direct question about the market’s expectation of reducing interest rates this year, resulting in a greater divergence between the market’s pricing of interest rates and the Federal Reserve’s expectation of how the economy might develop. Hewson said that at the last meeting, how many other members of the Federal Reserve believed that there were convincing reasons for raising interest rates by 50 basis points; In addition, given the recent strong US data, how much this may change in the past few weeks. The meeting minutes should answer the first question. The second question needs to see more data. But considering the recent evidence and the strong recent data, any information that may be regarded as hawks in the meeting minutes on Wednesday will be further amplified.

Interpretation of this information:

The article reports on Michael Hewson’s interpretation of Federal Reserve Chairman Powell’s recent press conference. Despite Powell’s insistence that the Federal Reserve would continue to raise interest rates and not consider a reduction this year, he did not categorically refute the market’s expectation of a rate reduction. This has led to a divergence between the market’s pricing of interest rates and the Federal Reserve’s expectations of the economy’s development. Hewson speculates that some members of the Federal Reserve may support a 50 basis point increase in interest rates, but the recent strong US data could change that stance. The meeting minutes may answer the first question, but the second question will need more data. Any hawkish information in the meeting minutes will be further amplified given the recent evidence and strong data.