Markets were looking for a firmer signal from Fed - ANZ

Analysts at ANZ noted that the possibility that the Fed may deliver another rate hike as soon as March has only occurred to the market fairly recently.

Key Quotes:

"The idea has gained traction recently, and today’s release of the minutes of the 1 February meeting showed that many members may agree, noting that “it might be appropriate to raise the federal funds rate again fairly soon if incoming information on the labour market and inflation was in line with or stronger than their current expectations”.

But markets were clearly looking for a firmer signal, as the USD sold off and bonds rallied post the release.

The next payrolls report will clearly be key, but we also have a stream of speeches from Fed speakers between now and the 16 March decision which will be important for shaping expectations."