Markets were mixed on Wednesday, moving first lower on fears of inflation and then higher after the FOMC minutes showed the committee ready to raise interest rates and begin shrinking its balance soon. What the minutes did not show was the possibility of two 25 basis point hikes at the March meeting as the most recent data has suggested. While the market reacted favorably to the news, traders and investors are warned not to read too much into the minutes or the market's reaction because the stock market correction is not yet over.

In other news, the Retail Sales figures for January were much better than expected and show sales up more than 3.0% over last year. The takeaway, however, is that consumer-level inflation is running at a near 10% pace YOY which means the gains in sales are nothing more than price increases. The good news is that inflation is expected to tame in the second half and that should take some of the pressure off of the consumer.