Equity markets tried to hold their ground on Wednesday but minutes from the last Fed meeting were too much to bear. The minutes reveal a Fed committed to fighting inflation and a committee that may have to increase the rate of interest rate hikes at the next meeting. The recent upswing in month-to-month inflation is troubling as it shows sustained systemic inflation that may persist indefinitely without decisive action.

The next trigger for the market will come on Friday with the release of the PCE price index. The consensus is for core consumer prices to have accelerated versus the previous month and for the YOY comparison to be flat. A flat reading is contrary to the belief that inflation is subsiding and will hurt sentiment, a hot read on this data point could send the market reeling.