CIBC Research discusses its reaction to today's FOMC minutes.
"The minutes of the Fed's last meeting reinforce the patient stance of policymakers, but did little to justify market expectations for rate cuts. Indeed, most participants did not expect the acute economic weakness observed recently to persist beyond the first quarter, though they did concede that growth is likely to step down from last year, particularly in light of the disappointing news on global growth," CIBC notes.
"Overall, the majority of members see rates stable for the remainder of this year, unless something forces them to alter their outlook. With regards to the balance sheet, officials suggested that they would likely reinvest the proceeds of maturing MBS securities in Treasuries to better mimick the composition of the Treasury market. The balanced nature of the minutes didn't meet the bar for expectations of further easing heading into the release, and as a result rates have sold off," CIBC adds.