FOMC minutes: hawks balanced with doves - Socgen

Kit Juckes, economist at Societe Generale explained that the hawks balanced with doves and the Fed in wait and see.

Key Quotes:

"I don't think this tells us much about the September meeting, which is, as ever, data and market-dependant, but it does tell us that the most we'll get is a very slow and cautious tightening path. OK, that's not going to surprise anyone out there but it provides some context to Bill Dudley's comments yesterday. I'm still sure that the FOMC would like the market to price a bit more in, but only because when they finally act, they don't want the dollar to go up too much (if at all) and risk sentiment to suffer too much (if at all). 

There is nothing here to dissuade investors from having a bias to have a short vol, long yield strategy. Winners still include EM, HY, Corp bonds and for the rest of the week, probably don't include the dollar. Once upon a time this would have been good for the Nikkei and bad for the yen but now, yet again, we find USD/JPY dragged lower by relative yields as everything yesterday's data and Bill Dudley achieved, is undone."