CIO Tom Graff Quoted by Invezz on Federal Open Market Committee’s September 15-16 meeting
Invezz quoted Facet CIO Tom Graff on the Federal Reserve’s split over inflation risks and rate decisions.
The spike in long-term interest rates was also a topic of discussion. Based on some things he’s said during his press conferences, Kevin Warsh views movement in longer-term rates in part as the market doing some of the Fed’s tightening for them. It is hard to tell for sure from the minutes, but it doesn’t seem to us that there’s consensus about that. Based on the minutes there doesn’t seem to be great concern over Treasury market volatility, which in turn means there is little chance the Fed takes any action based on bond market activity in the near-term.
The labor market was described as ‘stable,’ but bear in mind this meeting occurred before the weaker September jobs report. It could be that when FOMC members get to the October meeting, there are more concerns over the labor market than was evident from these minutes.