Economist Reaction To Yesterday's Fed Minutes

As expected, the Federal Reserve left the federal funds rate unchanged Wednesday for the fifth meeting in a row. Their minutes, which were released Wednesday at 2 p.m. ET, showed that near-term risks to the economic outlook have "diminished". "The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will strengthen," the minutes said.

Drivewealth's Brian Dolan thinks this dovishness could be good for the stock market.

"The Fed barely acknowledged the improvement in U.S. data recently," he said. "This suggests to me the Fed remains exceptionally cautious and that a September hike is highly unlikely to be in play. Risk sentiment should like this Fed statement, along with impending Japanese stimulus, so I would look for stocks to gain further from here and make new highs. If they don't, I take it as an indication markets have already priced in a steady Fed until the end of the year and that fresh buying may be in short supply, leaving profit-taking as the main alternative.

TD Ameritrade Chief Market Strategist JJ Kinahan added in an email that he still sees a potential rate hike in December. 

"The 2% inflation goal will remain difficult as Energy prices remain muted.  Although  the probabilities for a rate increase in September have increased, I still foresee December now a 57 % probability as the most likely time for a rate increase."