CIBC Research discusses its reaction to today's FOMC minutes from the June policy meeting.
"The minutes of the June FOMC meeting showed that policymakers viewed the US economy as moving in the right direction, while still being underwhelmed by progress in the labor market. While various members viewed conditions for being able to conduct a tapering in asset purchases as likely to be met earlier than previously thought, some participants viewed incoming data as providing a less clear signal on activity, leading several members to the conclusion that patience should be exercised in assessing progress towards its full employment and price stability goals," CIBC notes.
"Overall, the minutes underscore the divisions within the committee at the moment, which will require a more discernable trend in economic data before there is a consensus on policy action. We think a continued acceleration in job gains ahead will represent enough of a trend for an announcement of an early 2022 tapering at the September meeting," CIBC adds.