Wednesday, November 18, 2015

Here come the Fed minutes … (SPY, SPX, DJI, IXIC, QQQ, USD, DXY, TLT, TLO)

Minutes of the Federal Open Markets Committee’s meeting in October will drop at 2:00 p.m. ET.

They will give us a look into the deliberations that went into the Fed’s decision to leave interest rates unchanged, as had been expected.

More importantly, they could help markets better understand why the Fed thought a rate hike at next month’s meeting was appropriate. Markets are also hoping to be informed about what the pace of rate increases may look like, now that an initial hike in December looks more or less locked in. 

Since the meeting, we’ve heard from a dozen or so Fed speakers, including Fed chair Janet Yellen, who said two weeks ago that raising the benchmark rate next month was a “live possibility”, should economic data support a hike.

The data we’ve received over the last month has been mixed, with strong jobs gains and tame consumer-price inflation. 

While today’s minutes will detail the Fed’s assessment of various corners of the economy, those may be stale compared to some of the data we’ve received since then.

Ahead of the minutes release, stocks were rallying, with the Dow up about 124 points. 

We’ll have the full minutes and market reaction here at the top of the hour.

SEE ALSO: There’s really only one thing that matters to traders in the Fed minutes

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NOW WATCH: The killer jobs report could mean a rate hike in December

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