Last week's non-farm payrolls report divided the market with some economists arguing that job growth wasn't weak enough for the Fed to pull the trigger on another round of stimulus while others believed 3 months of payrolls below 100k keeps QE3 on the table. This lack of agreement means that every piece of incoming economic data will be assessed for on its impact on Fed policy.
With this in mind, tomorrow's FOMC minutes could help shape the market's expectations for QE3. When the Federal Reserve last met they extended Operation Twist and downgraded their GDP and inflation forecasts.
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