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Opinion
John Authers

Don’t Relax. The Fed’s Hawks Are Flexing Their Talons

The latest minutes show governors ready to err on the side of tightening, and a hike of 50 basis points can’t be taken off the table.

The Fed’s governors seem distinctly inclined to err on the side of hawkishness.

The Fed’s governors seem distinctly inclined to err on the side of hawkishness.

Photographer: Andrew Harrer/Bloomberg

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The last time the Federal Reserve published the minutes of its latest meeting on monetary policy, in the first week of this year, it set off a dramatic shift in the market’s expectations that still continues. The minutes to its January meeting, which were published Wednesday and you can find here, were a drab affair by comparison. Stocks enjoyed a bounce, though not a particularly big one. The yield curve steepened sharply. That tells us more about the markets than it does about the content of the minutes.