The Fed Offers More Clues about Rate Hikes

The Fed’s minutes on Wednesday provided more clues on inflation and interest rate hikes.

It showed several Fed policymakers agreed with Powell’s assessment that the Fed may soon begin to slow the pace of hikes.

Yet there have been confusing signals from other Fed officials, who have continued to stress that inflation isn’t going away and must be brought under control.

To that end, the Fed said in the minutes that inflation remains “stubbornly high” and “more persistent than anticipated.”

“more persistent than anticipated, in Singlish: “They also dunno how” inflation will be like in the coming months.

The Dow ended the day up more than 95 points, or 0.3%. The S&P 500 jumped 0.6% and the Nasdaq rose 1%.

The real danger will be with the continuous rise in interest rates and yet the dollar starts weakening, just like the pound. The dollar is trading lower in the past weeks, I am keeping watch on this closely. However, it is not all bad news, we can invest differently…

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