Ashley Joye Managing Partner T +44 (0)20 7422 2975 M +44 (0)7796 308 391 E ashley.joye@archr.com 49 Carnaby Street, London, W1F 9PY United Kingdom ARCHR.COM

image001.png@01D92070.74B11A90” align=”right”data-permanent-id=”1672896936_image001_63B661A800021DD938790003.png” src=”https://archr.com/wp-content/uploads/2026/02/69842b5e74ed7.png”>

 

 

From: James Fay <James.Fay@archr.com&gt;
Sent: 04 January 2023 19:12
Subject: Nick Timiraos – Fed Minutes Show Officials Feared Markets’ Optimism Could Complicate Inflation Fight

 

Fed Minutes Show Officials Feared Markets’ Optimism Could Complicate Inflation Fight

 

Policy makers hinted they want to slow interest-rate increases, while warning rates could rise to somewhat higher-than-anticipated levels at coming meetings

 

https://www.wsj.com/articles/fed-minutes-show-officials-feared-markets-optimism-could-complicate-inflation-fight-11672859245?mod=panda_wsj_author_alert

 

By Nick Timiraos

Jan. 4, 2023 2:07 pm ET

 

WASHINGTON—Federal Reserve officials raised concerns at their meeting last month that investors’ optimism that the central bank might end its rate rises could make it more difficult to slow the economy and combat high inflation.

 

Officials unanimously agreed to slow the pace of interest-rate increases by approving a 0.5-percentage point rate rise, but they projected somewhat higher-than-anticipated rates this year in new projections released on Dec. 14.

 

Minutes of the gathering, released Wednesday, didn’t shed any light about what might prompt officials to raise rates by another 0.5 point at their meeting next month or to reduce the pace of increases once more, raising them instead by 0.25 point.

 

But officials flagged concerns that their effort to lower inflation could be more difficult if markets rallied, in part as evidence accumulates that inflation is slowing. The Fed’s rate-setting committee is trying to slow down spending, investment and hiring to cool inflation.

 

“Because monetary policy worked importantly through financial conditions, an unwarranted easing in financial conditions, especially if driven by a misperception by the public of” how the Fed would react to new economic data “would complicate the committee’s effort to restore price stability,” the minutes said.

 

James Fay Founding Partner T +44(0)20 7422 2978 M +44 (0)7500 988 788 E james.fay@archr.com 49 Carnaby Street, London, W1F 9PY United Kingdom ARCHR.COM

image001.png@01D92070.74B11A90” align=”right” alt=”https://archr.com/images/email/logo.png” data-permanent-id=”1672896936_image001_63B661A800021DD938790003.png” src=”https://archr.com/wp-content/uploads/2026/02/69842b5e74ed7.png”>

 

 

---

Archr LLP is Authorised and regulated by the Financial Conduct Authority (FCA reference 617163).
Archr LLP is not covered by the Financial Services Compensation Scheme (FSCS).
Archr is registered in England and Wales No. OC371018. Registered office 115B Drysdale Street, Hoxton, London, United Kingdom, N1 6ND