Equity markets tried to rebound on Wednesday but were cut short by the FOMC minutes. The minutes, released late in the day, confirmed the market's expectation that interest rates would remain elevated for some time. As it is, the estimates have FOMC policy peaking above 5% in 2023 and ending the year at or above 4.5%.

The takeaway is the FOMC could begin to ease back on policy by the end of the year, but there are risks in that outlook. If inflation is not tamped down before they begin to ease, the economic acceleration that follows will drive another round of high prices.

The next hurdle this week is on Friday with the release of the NFP report. The NFP should show another month of strong job gains and wage increases, both good and bad for the economy. A weaker-than-expected report might be good news as it would show current FOMC policy is affecting the inflation situation.