Minutes of January 31–February 1 FOMC meeting reveal that “almost all participants agreed that it was appropriate to raise the target range for the federal funds rate 25 basis points at this meeting.”
“Many of these participants observed that a further slowing in the pace of rate increases would better allow them to assess the economy’s progress… as they determine the extent of future policy tightening that will be required.”
Yet, “a few participants stated that they favored raising the target range for the federal funds rate 50 basis points at this meeting or that they could have supported raising the target by that amount.”
While there are more speculations regarding a revert to 50bps at March meeting, 25bps is still the majority of bets. For now, fed fund futures are pricing in 76% chance of another 25bps hike in March, and just 24% for 50bps.
