The dovish FOMC clearly hinted that policy rates have reached sufficient limits☕

The market originally expected a calm trading day, but the minutes of the FOMC meeting, which should have been outdated, showed unexpected dovish arguments, suggesting that the policy interest rate has reached "sufficiently restrictive" and that economic risks will be two-way; there are many minutes of the meeting "Policy rate peaks" were mentioned for the second time, and "the focus of policy decisions and communications should shift from how high to raise rates to how long to keep them at restrictive levels." In addition, despite the current resilience of the economy, "many" officials are still optimistic that to downside risks to economic growth and a consensus that tighter credit could dampen economic activity; finally, Fed officials discussed the rise in "term premiums" for the first time in written comments, as the yield curve has steepened from July lows Against the background of about 60 basis points, their attention to this issue is also increasing.

Taken together, the comments further confirmed the Fed's decidedly dovish bias after the weekend and also pushed 30-year bond yields down 9 basis points, with the SPX up 1% from session lows.

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