Fed watchers have been expecting a ho-hum set of minutes from the Fed’s last meeting Wednesday, but they could be spiced up with some new information on the Fed’s post-bond buying strategy.
Two Fed officials spoke during Tuesday’s volatile trading, and some traders pinned the action on them, but both hawkish Philadelphia Fed President Charles Plosser and dovish New York Fed President William Dudley delivered their usual messages.
Dudley, speaking to economists in New York, gave some clues about what could show up in the Fed minutes. He said stopping the Fed’s reinvestment of mortgage securities before it raises rates may not be the best strategy, though the FOMC agreed to it in June, 2011. Previously, it was expected the Fed could allow reinvestments to end before rate hikes.
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