What to Expect From the Fed Minutes

Investors gauging the likely size of the Federal Reserve's interest-rate hike in March and plans for shrinking a balance sheet now at a record $8.9 trillion will get fresh clues today. JPMorgan's Bob Michele, Morgan Stanley's Matt Hornbach and Subadra Rajappa of SocGen have a preview on "Bloomberg The Open."

[Ishthemane]

Inflation at 15%
Fed: Idk if we should raise rates to .25% from 0

[Michael.j]

The only way to get ahead of inflation is to set the interest rate higher than the rate of inflation anything less is not going to have any effect

[bleacherz]

Classic case of an economists sounding like they were correct but the mkt is incorrect

[MrFdfa]

I think the Fed should begin rapid balance sheet reduction first, before raising any Fed interest rates.
The current inflation is due to the Ukraine war, Covid-19 disruption, and deglobalization, which cannot be solved via interest rates.
Raising the interest rates will only let ordinary people suffer more, especially with the increase in the mortgage/rent payment.

For ordinary people, the effect of double the mortgage/rent payment is much higher than double the energy & food bill. People can go through the unavoidable increase in their energy & food bills, but why should the Fed add a much heavier layer of higher mortgage/rent to them quickly before they can go through the higher bills first?

The rapid expansion Fed balance sheet via the QE program is unhealthy, and it mainly helps the people in the financial world, while the interest rate affects the living cost of every ordinary people.
I think the Fed should start the rapid balance sheet reduction first, while raising the interest rates only after the reduction is finished and give some time to the ordinary people to let them have enough income to pay for their monthly bills.

Rates up first -> bonds price down -> later Fed reduce balance sheet with a lower price -> public Fed lost money to private bankers.
Reduce balance sheet first with a normal price before rates up -> public Fed do not lose -> raise the rate after balance sheet reduction.

[harrychu]

Translation, their strategy has been to heavily short the market since Jan and if the Fed don't crush the markets, they stand to lose so much money on those put options, or what they like to call insurance as to not raise suspicions.

[PorscheSweden]

We’ll taper our asset purchases from 600 billion a month to 580 in 2025.

[mttgtz]

Should be a crime to be a professional telling people to buy right now. Lets visit 1929 news papers and see how every broker advised to buy when they knew retail presence couldnt stop the inevitable. Kicking the can I see? Prepare for the burn

[ssuwandi]

Bondholders keep dumping now their punny coupons cant afford to buy Brandon inflationary ice cream

[bleacherz]

They just can’t give up the gravy train - every person for himself

[Michael.j]

It’s way too late nobody can stop what’s coming and no one can predict the timing just be as prepared as you can

[trungtpham]

This narrative of high inflation, Fed too far behind the curve, 8 / 10 hikes, 50/75 basis point raises favors the shorts...and they have been making money hand over fist while the rest of us suffer. While some banks may not short, they stand to benefit with higher interest rate. If you're a short or have bank shares, good for you. If you're not, stop favoring the shorts. If you're neither, not in the market at all, and just want to see fireworks, get a life; learn to play the game and participate in the market as no one is stopping you. Don't sit there and sulk as you watch the world goes by.