US Fed Minutes (Sep 16-17)

The minutes of the Fed’s mid-September FOMC meeting confirm that “most participants observed that it was appropriate to move the target range for the federal funds rate toward a more neutral setting” as the “downside risks to employment” had increased. Nonetheless, with “a majority of participants” still emphasising the “upside risks to their outlooks for inflation”, we remain comfortable with our view that the FOMC will proceed at a slower pace than market pricing suggests.