While the local data card remains quiet, the market will have the minutes of the US Federal Reserve’s most recent policy meeting to digest today. Recall that the Fed cut interest rates by 50bps on September 18. The post-meeting statement highlighted that the FOMC sees inflation sustainably slowing towards the targeted 2%, while labour market outcomes have weakened slightly. The statement also noted that while economic activity is solid, the outlook is uncertain. The committee will thus continue monitoring incoming data to gauge an updated outlook on the economy.
Fedspeak since the meeting has also generally been less dovish-than-expected, which is understandable after strong labour market data recently. In any case, the result has been for markets to price out rate-cut risk such that only 25bp cuts for the Fed’s two meetings this year remain priced in. The latest FOMC meeting minutes will be looked at for further details on the Fed’s decision to implement an outsized cut at its September meeting and its view on labour market risks. It is, however, unlikely that the minutes will provide any information that will notably impact markets.