The minutes to the July Federal Open Market Committee meeting suggest the Fed will remain on a tightening path, but there are signs some officials are getting a little nervous that they could end up going too hard and may need to reverse course eventually. “Ongoing increases in the target range for the federal funds rate would be appropriate” with policy needing to move to a “restrictive stance”, but that “it likely would become appropriate at some point to slow the pace of policy rate increases”. That is as hawkish as it gets. No discussion it seems of a once mooted 100bp hike for July. Instead, there is an ... (full story)