A one word tweak, important messaging by it but something we already know
The FOMC statement added one tweak to the statement with everything else pretty much identical to the September one but the messaging was that the rise in long end rates is another form of monetary tightening as it should be treated as such. What else would you call a 100 bps rise in the average 30 yr mortgage rate since their last rate hike in July coincident with the jump in long rates?
“Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.” In the September statement, it did not include the word “financial” which I bolded.
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