December FOMC minutes show the Fed is worried short-term funding could seize up

The December FOMC minutes reveal that the Federal Reserve is concerned about potential disruptions in short-term funding markets. Officials noted that a lack of liquidity could lead to a seizing up of these markets, which may impact overall financial stability. The Fed is closely monitoring conditions and is prepared to take action if necessary to ensure smooth functioning. Additionally, the minutes highlighted ongoing inflation concerns and the need for careful policy adjustments moving forward.

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