State of extreme nervousness? The Fed’s “Valentine’s day meeting” agenda triggered speculation about raising interest rates
Today, a meeting notice on the Fed website attracted market attention.
This notice anticipates a private meeting at 11:30 a.m. local time on February 14 (next Monday), which will focus on the review and decision of the Federal Reserve Board of Governors on the prepayment rate and discount rate of the Federal Reserve Bank.
The notice once again triggered speculation about “raising interest rates in advance”. The main reason is that the new CPI data released by the United States yesterday once again set a 40 year record. The market has begun to generally expect to raise interest rates six or even seven times this year. The speech of “raising interest rates by 100bps before July” by Brad, chairman of the Federal Reserve in St. Louis, has poured a hot oil on the already tight market.
Tim duy, an observer of the Federal Reserve and a macro strategist at SGH, also said that it was not impossible to raise interest rates again before the FOMC meeting in March, “whether this Friday or next Monday”. This happens to coincide with the time of this meeting, so “sit tight” guessed.
However, it is precisely because the market is anxious enough about the topic of raising interest rates that it needs to be pointed out that this meeting is not an interest rate resolution meeting of the Federal Open Market Committee (FOMC), but a regular meeting of the board of Governors of the Federal Reserve to discuss the discount rate.
The Fed’s website shows that the board usually meets every other Monday, and the meeting will be held in public unless members consider matters that need to be kept confidential.
According to the minutes of the meeting, the Council held similar meetings on January 18 this year, December 6 and November 15 last year, and the contents of the meeting also focused on prepayment and discount interest rates.
Analyst Garfield Reynolds told Bloomberg that the “expedited procedures” mentioned in the notice only meant that the meeting did not need to be notified one week in advance.
“However, meeting notices are usually sent two working days in advance, which is indeed a warning to some extent.”
Submitted February 11, 2022 at 02:27PM by lilyxu185
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