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Danske Bank analysts note that the FOMC minutes were a bit outdated after the weak ISM data and the mixed picture from the US jobs report that was released after the September meeting and thus the market reaction to the minutes was muted.

Key Quotes

“The minutes showed that the FOMC committee remains very divided on the number of future cuts and ‘several’ participants thought the Fed should clarify its intensions, so we could see change in the forward guidance language at the upcoming meeting.”

“The Fed also discussed the liquidity conditions but we already know from Powell’s recent comments that the Fed will make an announcement in October on ‘organic growth’ in the balance sheet. We believe consumer confidence tomorrow and retail sales on Wednesday next week are going to be key for the Fed’s decision on 30 October, when we expect another 25bp cut.”