(8/18/22) If the Fed's most recent FOMC Meeting Minutes were a fairytale, it might be an adaptation of The Three Bears--something for Goldilocks and everyone else.
Markets rallied right into the 200-dma, selling off in the morning, as the Fed fed both hawks and doves in its FOMC Meeting minutes release: "Moving to a restrictive policy stance is required" inspired the hawks, but does not suggest a Fed picot anytime soon.
But, "the bulk of the tightening effect is yet to be felt," teased market bulls that the Fed isn't going to tighten as much because of the 9-month lag between Fed monetary policy actions and economic effects.
Future rate hikes will be determined by incoming information, which soothes the souls of dovish investors concerned about the pacing of future rate hikes.
