April 5, 2017
Today's FOMC minutes offer a possible outline for this year's monetary policy, that is gradual rate hikes combined with the initial unwinding of the Fed's $4.5 trillion balance sheet. The day's indications for Friday's employment report were mixed with ADP predicting a 3rd straight month of substantial strength but the ISM non-manufacturing report showing a substantial falloff in hiring.
Stocks moved lower following the minutes, possibly in reaction to the description of equity valuations as "quite high." The Dow posted a 0.2 percent loss to 20,648. Money moved into the bond market also in late trade, with the 10-year Treasury yield falling 5 basis points from its session peak to end at 2.33 percent. The dollar and commodities were little changed.