NEW YORK, Nov 23 (Reuters) - A "substantial majority" of policymakers at the Federal Reserve's meeting early this month agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes as debate broadened over the implications of the U.S. central bank's rapid tightening of monetary policy, according to the minutes from the session.
STOCKS: U.S. stocks rose after the Fed minutes. BONDS: U.S. Treasury two-year, 10-year yields slipped. FOREX: The dollar extended losses versus the yen and euro.
PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK
"No major surprise. The key point was the officials said the terminal rate is likely to be higher than previously expected, but the market already knows that. Ongoing rates are appropriate. The market knows that."
"There may be a little bit of a surprise that the majority supports slower rate hikes ahead...As you can see the markets have gained a little bit of upward momentum since the minutes were released."
MICHAEL JAMES, MANAGING DIRECTOR OF EQUITY TRADING, WEDBUSH SECURITIES, LOS ANGELES
"Multiple Fed governors indicated a slowing in the pace of rate hikes, which is pretty much exactly what equity markets needed to hear. They didn't say they're going to be pausing. Merely the fact that they're going to be slowing the pace confirms what the majority of people have been hoping to see. That's why you're seeing an equity spike initially. Obviously, we'll see where things go in the next two hours."
"What equity markets needed to see for the recent strength to continue was what we got from the minutes."
Our Standards: The Thomson Reuters Trust Principles.
Read Next / Editor's Picks
- Rates & BondsPhilippines cbank chief: Likely 25 or 50 bps rate hike in Dec -Bloomberg TV
The Philippine central bank will hike interest rates this month, though the monetary board is likely to be split over whether to raise the policy rate by 25 or 50 basis points, its governor said on Friday in an interview with Bloomberg TV.