Markets mostly trod water during the Asia session as the absence of news headlines and G10 economic data releases provided no incentive to participate. It was Japan’s first day back after the holiday season, but activity is still well below typical daily levels. The FOMC minutes from the December meeting confirmed that several members are still uncomfortable with the current pledge to keep rates unchanged until mid-2013. This should not come as any surprise given three dissenting votes were cast when the policy language was first adopted. Of greater interest were plans to change the Fed’s communication strategy. This strategy has been in flux for over a year now and, as a result, the Fed Chairman now gives post-meeting press conferences four times per year. Continue reading →