FOMC Minutes Show "Many Fed Officials" See Rate-Cuts Warranted

Since the June FOMC meeting, Gold has dramatically outperformed. Stocks are higher but bonds and the dollar have roundtripped to unchanged (at least before Powell's testimony sparked some comeback).

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Better-than-expected macro data has been the theme in the short amount of time since the June FOMC meeting...

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But Powell vehemently shrugged good news off today, happier instead to promote the more pessimistic side.

However, eyes remain on the FOMC Minutes for any more signs of dovishness spreading across the Fed members, though notably Powell's testimony today - uber-dovish - outweighs one-month old meeting minutes.

In fact today alone, the odds of a 50bps rate cut in July has surged to 23% from 0% before Powell spoke...

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But the Minutes still managed to be more dovish than expected...

*MANY FED OFFICIALS SAW STRONGER RATE-CUT CASE AMID RISING RISKS

However...

*FED: SEVERAL OFFICIALS DIDN'T YET SEE A STRONG RATE-CUT CASE

There was one sensible member...

*A FEW FED OFFICIALS SAW RATE CUT RISKING FINANCIAL IMBALANCES

But, downside is the worry now...

*MANY FED OFFICIALS IN JUNE SAW RISKS WEIGHTED TO THE DOWNSIDE

For now, Fed Funds futures are steady after the Minutes, with 70bps of easing priced in for 2019.

*** Full Minutes Below: