HALISTER1: FOMC Minutes Less Hawkish Than Market Expected: BMO’s Kohli

FOMC Minutes Less Hawkish Than Market Expected: BMO’s Kohli

(Bloomberg) -- Minutes of FOMC’s Sept. 19-20 meeting paint “a more mixed picture” than statement and lack of movement in 2018 dots did, BMO strategist Aaron Kohli writes in note.
  • Overall tone of minutes “was less hawkish than the market may have been expecting,” and most curve spreads (2s10s, 5s30s) steepened slightly in response
  • Until Fed’s worries about inflation appear to translate into delaying future hikes, “it’s not clear the market will price too much of this concern” into probabilities
    • “We see some of this equivocating as simply keeping options for December open”
To contact the reporter on this story: Vivien Lou Chen in San Francisco at vchen1@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Elizabeth Stanton

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Source: BFW (Bloomberg First Word)

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Aaron Kohli (Bank of Montreal)

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