Barclays Research discusses its expectations for tomorrow's FOMC minutes.
"We expect the minutes to show that members favored one further cut in the policy rate in October and agreed to send a message that the Fed was through with providing insurance for now given the lag between changes in the policy rate and economic outcomes. That said, the FOMC statement contains an easing bias owing to residual uncertainties plaguing the global outlook and we expect many members to hold the view that the Fed should be prepared to ease further (eg, act as appropriate) to sustain the outlook," Barclays notes.
"The minutes may appear somewhat stale in any assessment of the balance of risks given the October employment data and reported progress on US-China trade discussions came after the committee met. We also expect to read extensive discussion on the steps taken to quell unrest in short-term funding markets and progress toward a standing repo facility," Barclays adds.