Fed Minutes Show Hawkish Bias, TD Securities Says

TD Securities economists Oscar Munoz and Eli Nir highlighted that the June FOMC minutes revealed a hawkish stance. Most participants were prepared to raise rates further if inflation continues to be driven by supply-side factors.

The analysis suggests the Fed is leaning toward tighter policy, keeping the door open for additional hikes. Market participants are now pricing in a higher probability of rate increases.

The minutes underscore the Fed's commitment to curbing inflation, even if economic growth slows. This stance could strengthen the US dollar in the short term.