📍The Fed maintains interest rates at 3.5%-3.75%, but the FOMC minutes are more hawkish than the previous meeting.

📌The Fed keeps interest rates steady in the 3.5% - 3.75% range, as expected by the market. The FOMC minutes include some adjustments:
- Last time, the Fed said inflation was still "somewhat elevated."
- This time, the Fed changed it to “elevated.”
- The Fed states that inflation has increased partly due to recent global energy prices.
-> The Fed admits that oil prices have an impact on inflation.
📌A clearer stance on the Middle East,
- Last time, the Fed said the impact of Middle East developments on the US economy was "uncertain."
- This time, the Fed changed it to "Middle East developments create a high degree of uncertainty for economic outlook."
📌Voting developments:
- Stephen Miran opposed holding rates, wanting a 25 basis point cut immediately during the meeting.
- Beth Hammack, Neel Kashkari, and Lorie Logan supported holding rates steady but did not agree to include easing bias in the minutes.
-> Fed members do not support signaling further rate cuts in the future.
📌Overall signal from the Fed: Hawkish hold. This is also the last meeting where Powell served as Fed Chair. Despite the hawkish stance, the stock market hit all-time highs.