Markets reacted strongly to the latest round of Fed minutes, released on Tuesday.  Reflecting the discussions held by the FOMC at the March 13 meeting, the minutes continue to show a divided Fed, with quantitative easing still being debated as an option and one member calling for tighter policy before 2014.  Stronger labor markets were also met with caution by the Fed, which warned higher oil prices would push up inflation, but Bernanke & Co. expect that effect to be temporary.

The Fed appears to have taken an opposite view from equity markets on the recent slew of positive economic data. While stocks rallied strongly in the first quarter, FOMC participants noted "GDP growth would pick up only gradually in 2012 and 2013" and only with the aid of "accommodative monetary policy, easing credit conditions, and improvements in consumer and business sentiment."

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