The FOMC minutes scheduled today might disappoint traders, analysts caution

Despite market confidence, Wall Street analysts advise caution, pointing out that quick rate cuts are unlikely.

According to a note released today by Macquarie strategists, the confidence is based on the notion that a "soft landing" in the US will usher in a "new growth era," drawing comparisons with the years 1994–1995.

The analysts stated, "Among other major differences with the roaring 90s, the Fed has tightened much more in the recent cycle, leading indicators are chronically weak, and there's no 'peace dividend' to enjoy."

When the FOMC minutes are released to the public later today, experts predict that investors will pay close attention to how much was spoken regarding policy rate decreases.

Although in December Jay Powell alluded to a vigorous debate about lowering interest rates, subsequent remarks from other Fed speakers have suggested that rate cuts are not likely.

Thomas Barkin, President of the Richmond Federal Reserve, stated today that "the potential for additional rate hikes remains on the table."

Minutes "will likely make some attempt to follow post-FOMC speakers in "pushing back" against markets pricing very near-term rate cuts," according to a consensus of Citi analysts led by Andrew Hollenhorst.

Nevertheless, he doesn't think the Fed representatives will be "all that convincingly hawkish."

(Sources: investing.com, reuters.com)