FOMC minutes likely to show peak dovishness - TD Securities

Previewing next week's macroeconomic events in the U.S., "After the sharp drop in the dots, markets will be looking at just how dovish the FOMC has become," TD Securities analysts said.

Key quotes

"We put a very low but not zero chance on a cut discussion; conversely rate hikes are still on the horizon for the majority of Fed officials. The minutes are likely to show peak dovishness in terms of nervousness about the outlook. Balance sheet details are unlikely."

"Vice Chair Clarida has represented the more dovish side of the FOMC over the past several months, and he should continue to sound very cautious on the global outlook and stress patience given muted inflation. He may suggest allowing a significant overshoot before hiking again. If asked, he is likely to concede there are rate cut scenarios, but not that likely in his view."