FOMC the next focus

At the top of the hour, the FOMC minutes from the March 13 meeting will be released.

If you’ll recall, the statement released after the meeting was more hawkish than the market expected, setting off a jump in US bond yields.

It is hard to imagine the minutes being particularly dovish given the change in tone in the statement.

Was QE or extending Operation Twist discussed? Probably.

Just like the exit strategy, the FOMC discusses all contingencies these days, I’d be willing to bet.

I would expect the minutes to reflect the tone of the statement, one of cautious optimism on the economy while being ever mindful of the risk of falling back into recession if economic growth does not pick up momentum.