FOMC minutes are due in about 15 minutes, so dealers are taking a few chips off the table.
I’d expect the Minutes to bolster the message that the Fed intends to keep rates low for a considerable period while at the same time laying out the exit strategy that they expect to undertake without moving the Fed funds target. QE is scheduled to end this spring while many liquidity programs die at the end of this month.
The buck could get a boost if more than a few members voice inflation concerns, but given the unanimous vote and inclusion of the phrase about keeping abnormally low rates for an extended period in the December statement, that seems unlikely.
