The minutes of the Fed's May meeting should show that officials faced a scenario of uncertainty at the beginning of the month, amid unstable government decisions, such as the announcement and postponement of tariffs on European imports. The president of the Richmond Fed, Tom Barkin, compared the situation to 'driving in fog,' as data shows an economy with still low unemployment and inflation approaching the 2% target, but with no clarity on the next steps.
Meanwhile, major New York exchanges turned negative this Wednesday, pressured by the rise in Treasury rates, which reached the day's highs. The movement reflects investors' caution ahead of the Fed's minutes release, as well as weak demand in the Japanese government's 40-year bond auction, which ultimately impacted global fixed-income markets.