Tl;dr:FOMC Minutes confirm a deeply-divided Fed with a hawkish bias as"majority" saw hike likely warranted,"many" preferred removing easing bias.
Since the last FOMC meeting (Powell's last), on April 29th, stocks and the dollar are up, bonds and gold are down and oil has swung violently in between...
Expectations for Fed action this year has surged hawkishlyfrom a 20% chance of a single rate-cut to an almost 100% chance of a single rate-hike this week (before today's decline)...
And that hawkish shift has occurred asUS macro data has dramatically surprised to the upside(with both growth and inflation data higher than expected)...
Today's FOMC minutes will be closely watched for further details surrounding the increasingly hawkish split within the Committee following the April meeting.
With three voters dissenting against retaining the easing bias - and Fedʼs Collins later suggesting she would have supported removing it too - markets will look to see how broad support was for removing the easing bias, particularly after Powell said more officials now view a hike just as likely as a cut.
Main headlines from the Minutes:
*FED: VAST MAJORITY SAIDINFLATION COULD STAY ELEVATED LONGER
*FED: OFFICIALS SAID INFLATION, WAR COULD MEANLONGER RATE HOLD
*FED: OFFICIALS EXPECTEDJOB MARKET TO STAY STABLEIN NEAR TERM
Source: ZeroHedge News
