Greetings!, Today we witnessed the power of a single statement from the Federal Reserve. The U.S. equities markets, as well as the precious metals complex, sold off sharply in response to the release of the Federal Open Market Committee's minutes from its meeting on March 13. The reaction was in response to minutes that revealed a strongly divided Federal Reserve. It's all about quantitative easing. Participants in the FOMC meeting noted an improved economic environment. However, the Fed remains cautious and is expected to keep current interest rates at record lows. Between the lines It is all about the wording of the minutes, with traders paying close attention not only to what is said but what isn't mentioned. We have to deconstruct both the said and the unsaid nuances. The wording contained in minutes released today strongly suggest that the Federal Reserve might in fact be moving away from another round of quantitative easing or QE3. What is most interesting is the current division among Federal Reserve members. According to Forbes, only a couple of members pushed for more policy action in the latest meeting compared with a larger number in the December meeting. It also appears that the Federal Reserve has taken an opposing view from the equities markets. As stocks have seen unprecedented gains for the first quarter of 2012, FOMC participants noted that "GDP growth would pick up only gradually in 2012 and 2013." My best take on today's activity is to let the dust settle and see the long-term reaction to this new information rather than indulge in the knee-jerk reaction witnessed in the equities and precious metals markets today. As always, wishing you good trading, Executive Producer | 
