The supposedly dovish April FOMC statement – as global fears fell and turned domestically – has left bonds and bullion the winners and stocks the losers as investors lose faith in The Fed’s forecast and economic promises. Today’s FOMC meeting minutes suggest an increasingly cornered Fed will pull the trigger iun June with member disagreements brewing…

Of course, no matter what narrative the market perceives from these minutes, tomorrow’s speeches by Dudley and Fischer (who has been conspicuously quiet recently) will likely give the biggest hint as to what happens next.

Further headlines:

Since The April FOMC Statement, stocks are the laggard, gold and bonds outperforming while Oil has spiked 9%!!??

And ED Futures have rallied (dovish) and sold off (hawkish) back to unchanged…

If The Fed doesn’t go after this statement, then all credibility will be lost.

Here are the key statement excerpts:

June rate hike may be warranted:

Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June.

The Fed remains worried about foreign developments:

Many participants noted that downside risks emanating from developments abroad, while reduced, still warranted close monitoring. For these reasons, participants generally saw maintaining the target range for the federal funds rate at ¼ to ½ percent at this meeting and continuing to assess developments carefully as consistent with setting policy in a data-dependent manner and as leaving open the possibility of an increase in the federal funds rate at the June FOMC meeting

Many participants noted that downside risks emanating from developments abroad, while reduced, still warranted close monitoring