Full ArticleSome Federal Reserve policymakers have signaled that financial markets could suffer if investors carry on expecting interest-rate cuts, according to minutes from the central bank’s December meeting.But the Fed appears to have issued a veiled warning that investors piling into stocks right now would in itself be inflationary – which could then require the central bank to boost rates further at a later date.”No participants anticipated that it would be appropriate to begin reducing the federal funds rate target in 2023,” the minutes read. “A number of participants emphasized that it would be important to clearly communicate that a slowing in the pace of rate increases was not an indication of any weakening of the committee’s resolve to achieve its price-stability goal or a judgment that inflation was already on a persistent downward path.”
