FOMC Minutes come in HAWKISH 🦅, with majority leaning toward rate HIKES if inflation persists.
5 quotes from the report that stood out:On wage-price spiral risk: "Elevated inflation rates could begin to have an increased effect on wage and price-setting decisions"On sticky inflation: "The staff viewed the possibility that inflation would be more persistent than anticipated as a salient risk"On future hikes: "Some policy firming would likely become appropriate if inflation were to continue to run persistently above 2 percent" On market froth: "Several participants noted that asset valuations remained elevated and that such conditions heightened the possibility of sharp corrections should adverse developments materialize."On private credit contagion: "Losses in this sector could spill over to other markets, causing a broad credit contraction."
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