CIBC Research discusses its reaction to today's US FOMC minutes from the September meeting.
"Given that today's Fed minutes are from a meeting which occurred prior to the latest ebbs in fiscal stimulus negotiations, they shed little light on the central bank's next move. At the time of the last meeting, the minutes state that the economic outlook of many participants had assumed additional fiscal support. If stimulus turned out to be less generous or arrived later, those participants would have had a weaker outlook," CIBC notes.
"The minutes also didn't provide much new information surrounding the implementation of the Fed's new average inflation targeting framework, other than suggesting there was more disagreement surrounding the central bank's conditional commitment to keep rates pinned down than was suggested in the number of dissents to the statement. The fact that the central bank didn't discuss adding to the pace of QE or lengthening the duration of purchases, which the market seemed to be expecting even before the latest disappointments on the fiscal policy front, has seen longer-term bond yields rising," CIBC adds.