FOMC Minutes corroborate expectations for speedier taper plan
The S&P 500 is down 0.1% following the release of the FOMC Minutes from the November meeting. The minutes showed that "some participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases," which was what many market participants were expecting in light of the latest economic data, recent Fed commentary, and the rise in the 2-yr yield. In addition, "various participants noted that the Committee should be prepared to adjust the pace of asset purchases and raise the target range for the federal funds rate sooner than participants currently anticipated if inflation continued to run higher than levels consistent with the Committee's objectives."Presently, the CME FedWatch Tool has a 54.5% probability of a rate hike in May 2022, versus 35.8% one week ago and 45.4% yesterday.