There were a lot of mixed messages in Fed Minutes which caused WSJ and Fed insider Jon Hilsenrath saw the Fed as more hawkish while Fed members reflected on global market weakness was not a current problem for U.S. markets. That seems naïve and dismissive of the previous “world is flat” mantra. The U.S. can go it alone which seems dumb.
“Some participants pointed out that, despite the market volatility, financial conditions remained highly accommodative and that further pockets of turbulence were likely to arise as the start of policy normalization approached,” the minutes said. “That said, more work to better understand the recent market dynamics was seen as desirable.” Do these comments indicate a Fed behind events? It seems so.
Markets were at first strong on