"The Fed offered additional forward guidance on asset purchases without changing the size or composition at their December meeting. The minutes are likely to show officials were content with the current policy stance. Policymakers’ medium-term optimism about vaccination and near-term concerns about lack of fiscal stimulus (which has since passed) should show officials are ready to ease more if financial conditions tighten," CS notes.

"The minutes should reaffirm the view that the Fed will taper asset purchases before hiking interest rates. The Fed is ready to ease more if financial conditions tighten, but with markets calm and recently passed fiscal relief there is not much more for them to do to support the recovery," CS adds.