The Fed could move markets this week when it tells us what it was thinking at the January meeting

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The Fed calmed the markets in late January when it said it could stop raising interest rates, but investors are watching the release of its meeting minutes for any sign the Fed could veer off its easy path.

“It’s hard to imagine the Fed sounding as dovish in the minutes, as [Fed Chair Jerome] Powell sounded in the briefing . We do think the minutes will be bearish. As far as the general tenor, it’s hard to see it more dovish than it was on Jan. 30,” said Michael Schumacher, director strategy at Wells Fargo.

The Fed, at that meeting, held rates steady and emphasized it could pause in its rate hiking cycle. In what felt like an about face from its December meeting, Powell also emphasized that the Fed would be flexible with its balance sheet. The Fed releases the minutes of its meeting Wednesday afternoon.

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