Fed Minutes Hawkish Surprise Resets Market Expectations

Fed Minutes Hawkish Surprise Resets Market Expectations

December Federal Open Market Committee minutes came in tougher than markets anticipated, forcing traders to recalibrate bets on the Fed's policy path. The disconnect matters: when the central bank signals more aggressive tightening than expected, bonds sell off, borrowing costs rise, and appetite for risk assets fades. Gold and other commodities particularly vulnerable to dollar strength that follows hawkish surprises.

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