Two Fed Dissenters Pushed for a Quarter-Point Hike as Activity Runs 'Strong'
IXIC sits 28% above its 52-week low of $20,690.249.
Summary
The October FOMC statement revealed two dissents — Fed Gov Cook and Hammack — both wanting a quarter-point hike rather than whatever the committee delivered, and the Fed left rates unchanged. The statement upgraded its read on the economy to 'expanding at a strong pace,' said officials are watching an 'accumulation' of data, and noted that inflation remains elevated and that uncertainty remains elevated owing, in part, to geopolitical developments. It also said productivity growth is strong, capital investment is robust, and job gains have kept pace with the workforce. That combination points to a more hawkish committee than the September 16 quarter-point hike implied, with two members already arguing for more tightening. Fed's Warsh said the overwhelming FOMC judgment was there is no firm conclusion on the future path of monetary policy and that inflation is still too high, while noting initial jobless claims are averaging the lowest in generations and that next year is one of eight FOMCs to focus on strategic issues with neither a vote on the fed funds rate nor a policy statement. For equities, a Fed that sees strong activity and has dissents toward higher rates keeps pressure on rate-sensitive growth names, and the Nasdaq is trading near its 52-week high after a rough September oil-driven selloff. The September jobs report on October 2 came in far below consensus at +29K versus +85K, so the 'strong pace' language sits awkwardly against softening labor data — watch whether later speakers walk that back.
At the time of this announcement, IXIC was trading at $26,436.94 on NASDAQ in the Finance sector. The 52-week trading range was $20,690.25 to $27,722.75. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Mace News.