FOMC minutes: Participants' contacts reported continued widespread input cost pressures

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• Contacts said they have largely been able to pass on price increases their customers
• A 'couple' participants wanted to end QE sooner than planned
• Participants anticipated that it would soon be appropriate to rates Fed funds rate
• Some participants noted risk of undue tightening in financial conditions
• A few noted this risk could be mitigated through clear and effective communication, including on the appropriate path of monetary policy
• A few participants noted possibility of return of structural disinflationary pressures
• A few noted asset valuations were elevated across a range of markets
• Many commented that the sales of agency MBS could be reinvested in to Treasuries
• Participants generally expected inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to moderate over the course of the year
• Some noted that longer-term inflation expectations remained well anchored

The US dollar has modestly softened on the release of the minutes, with nothing so far suggesting that a 50 basis point hike is the preferred path forward. The implied odds of 50 bps have also come down by about 10 percentage points since early today and are now below 50%.