Reply To: Federal Reserve Raises Rates 50 Basis Points First Time Since 2018 as Expected

Helmholtz Watson

Fed Minutes

‘Many’ participants noted they would have preferred a 50 bps hike
Participants judged appropriate to move to neutral ‘expeditiously’
Participants noted that — depending on developments — a move to tighter policy stance could be warranted
Participants generally agreed to monthly caps of about $60B for Treasury securities and $35B for MBS
Participants generally agreed that caps could be phased in over a period of three months or modestly longer
All participants underscored the need to remain attentive to the risks of further inflation
Participants generally agreed that after balance sheet runoff well underway, would be appropriate to consider sales of MBS
Many noted that one or more 509 bps increases in the target range could be appropriate at future meetings, particularly if inflation pressure s remained
Participants agreed Fed was ell placed to begin balance sheet reduction as early as the May FOMC meeting
Several participants judged that the upside risks to inflation from the war were more pronounced than downside growth risks