Fed Minutes Preview: Hints For A Rate Increase?

While Greece and China take center stage, the Federal Open Market Committee (FOMC) minutes from the June meeting will be released on Wednesday at 2 p.m. ET, with traders focusing on hints for the timing of an interest rate increase. With recent economic data largely uninspiring, and now with Greece and China weighing on the markets, the possibility of a September rate hike has been somewhat diminished. San Francisco Fed President John Williams speaks at 2 p.m. on his outlook, followed by a speech Friday from Chairwoman Janet Yellen. Both these speeches may provide further clarity inside the viewpoints of the Federal Reserve. John Briggs, head of strategy at RBS. doesn't think the Fed minutes should change the previous perception of the market, but does think that Yellen's talk on the economy Friday might be a market mover. Briggs is looking for the Fed minutes to reflect the neutral statement of the June meeting, saying, "I think it's going to sound like a watch and wait Fed." RBS calculates the market is expecting the first full rate hike in January, and sees just a 22 percent chance of a rate increase in September.