Greetings,
United States:
The FOMC minutes revealed an even more hawkish Federal Reserve than the markets were expecting.
• Inflation concerns:
Participants remarked that inflation readings had been higher and were more persistent and widespread than previously anticipated. Some participants noted that trimmed mean measures of inflation had reached decade-high levels and that the percentage of product categories with substantial price increases continued to climb.
• Faster rate hikes:
Participants generally noted that, given their individual outlooks for the economy, the labor market, and inflation, it may become warranted to increase the federal funds rate sooner or at a faster pace than participants had earlier anticipated.
Bonds around the world sold off in response to the hawkish FOMC minutes.
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/US-Hike-2-and-52201060441.png)
Asia-Pacific: USD/KRW is testing resistance as the won weakens due to the hawkish FOMC minutes and North Korea’s latest missile test.
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/AS-KRW2201060441.png)
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/AS-KRW-ST2201060441.png)
Commodities: Commodity ETFs saw outflows last year, dragged lower by gold exposures.
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/CO-Flows2201060441.png)
Energy: Asia is embracing nuclear power.
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/EN-New-nuclear-reactors2201060441.png)
Global Developments: Just 1.5% of all stocks have generated net wealth in global markets over the past 30 years.
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/GL-Stocks-that-generated-net-wealth2201060441.png)
Food for Thought: Credit cards vs. BNPL (buy now pay later):
![The Daily Shot Brief – January 6th, 2022](https://thedailyshot.com/wp-content/uploads/VTB-Credit-cards-v-BNPL-Buy-Now-Pay-Later2201060441.png)
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com