The Fed minutes are said by some to have been dovish. If one considers that the Fed minutes did little to nudge front end implied rates closer toward expecting a policy move in December, then by that definition, the minutes were friendly.
A 15-year high for tech stocks on the Nasdaq helped world shares to a 2-1/2 month peak on Tuesday, though more engine trouble for Volkswagen and a $5.1 billion cash call by Standard Chartered left Europe feeling flat.
On Wednesday, the Fed Open Market Committee announced that it would not raise interest rates in October 2015. That means that Zero-Interest Rate Policy (ZIRP) has remained in place for 2,508 days and counting.
After yesterday’s hawkish FOMC statement we should prepare for even more scrutiny of every U.S. economic release, starting with today’s GDP reading, as investors once again try to anticipate whether or not we’ll get a rate hike in December.
The Fed Open Market Committee will meet this week to discuss monetary policy and the possibility of the first U.S. rate hike in years. With dovish sentiment dominating the global dialogue of central banks, keep an eye on additional policy meetings from Sweden's Riksbank, the Reserve Bank of New Zealand and the Bank of Japan.
The market has that easy money feeling again, a phenomenon that was thought to be fading into the rear view mirror on the heels of the U.S. economy. The inaction of the fed last month coupled with the soft jobs data from Friday have market participants acting as if zero interest rates are here for good.