Market Reaction to Fed Minutes

The Fed just announced their meeting minutes with an approval of a third consecutive .75 percentage point increase. They also mentioned that they will “slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation.”

The increase was expected so the market didn’t react negatively to that. The flexibility to reassess interest rate increases was a positive sign as the case for recession seems to be growing stronger. At this point, the DOW is up .44% to 29,369 and the NASDAQ up .40% at 10,466.

I’m not sure if the markets will follow its seasonality trend. There are so many issues that are causing market pessimism. CPI numbers will be announced tomorrow. Following the Fed’s lead, I’ll examine the data before making any moves.