Bank of America Global Research discusses its expectations for tomorrow's FOMC minutes from the December policy meeting.
"The minutes from the December 16th FOMC meeting will have two main areas of focus: 1) specifics on the new qualitative outcome-based guidance for asset purchases; and 2) potential triggers to prompt a change to the parameters of the balance program which could include duration extension or size," BofA notes.
"On the former, we think there will be a general agreement that asset purchases should continue until there is substantial progress in reaching the mandate, with "substantial" meaning approaching the targets. But there may be some FOMC officials who wanted to be more specific and could offer possible alternatives to the language which will provide some insight into the debate around the table...We think that the agreement was that financial conditions were still accommodative and policy was appropriate without changes to the program. We don't expect a mention about tapering in the minutes as Fed officials will be very careful not to send a misleading signal about the end of the program," BofA adds.