Minutes from Kevin Warsh's inaugural FOMC meeting reveal a committee split between members citing persistent AI-driven inflation and those expecting energy-price disinflation to do the work. All members agreed to hold rates unchanged, but the document offers no clear signal on the timing or direction of the next move, leaving markets to parse factions rather than consensus.
For Armada's traditional repo desk, an indeterminate rate path prolongs spread compression uncertainty on term repo and complicates duration hedging on Treasury and agency collateral. Counterparties such as hedge funds and asset managers pricing forward repo will demand wider optionality, and any hawkish re-rating of SOFR expectations could reprice existing bilateral and FICC-cleared book positions.