CIBC Research discusses its reaction to today's FOMC minutes from the January meeting.

"The minutes of the January FOMC meeting show that policymakers remain comfortable with staying on the sidelines for now. Officials remain confident in the consumer as a source of growth, as a few believe that the labor market remains below maximum employment, with several seeing scope for greater labor market participation ahead. The balance of risks to the outlook was viewed at the time as somewhat more favorable, however, the meeting took place before the coronavirus fears became amplified, so that sentiment could change in the next meeting. Their view on inflation remains that it will return to target as a series of unusually weak readings from early 2019 start to fall out of the annual calculation," CIBC notes.

"Further elaborating on the meeting announcement, where it was said that the execution of repo operations would continue at least through April, the minutes suggested that conditions for tapering purchases are expected to be warranted in Q2," CIBC adds.