Institution: Fed Interest Rate Cut Path Divergence Intensifies, Meeting Minutes Expected to Clarify Direction

On November 20th, the data fog has heightened the uncertainty regarding the Fed's policy. Many Fed officials have expressed concerns about inflation stickiness and adopted a cautious attitude towards further rate cuts. This has also kept U.S. Treasury yields within a relatively narrow range as traders await new catalysts to change market pricing. Michael Lorizio, the Head of U.S. Rates and Mortgage Trading at Manulife Investment Management, stated, "We have been lacking top-tier economic data guidance for an excessively long time. It is difficult to form a highly confident judgment on the current state of the U.S. economy until the data begins to emerge." The upcoming release of the Fed's October meeting minutes may provide more insights into how many policymakers might be opposed to a rate cut in December. "When there were seemingly many different opinions earlier, today's summary information through the meeting minutes may assist in further shaping market expectations for the December meeting," Lorizio said. (FXStreet)