Market Insider

More traders see Fed taking a pass on September hike

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Stocks reverse following Fed; then head down again

Markets embraced the Fed minutes as a relatively dovish sign the central bank was not quite ready to move on raising rates back in July, but so far Wall Street economists' forecasts for a September hike are not changing.

"We still have a September call. We've thought it is a pretty close call for quite a while, and we still do," said JPMorgan economist Bob Mellman.

Stocks were lower and bond yields dropped, while traders bet the first Fed rate hike may now be later than September. The dovishness showed up in a big way in the two-year yield, trading at 0.65 percent after the release, down from 0.70 percent before the Fed minutes.

Read MoreFed 'approaching' hike, not there yet

"It's more of the same. They said they're not there yet. They need more data. It's getting closer. People thought if they didn't advance the ball now, then they would be running out of time. This would be seen dovishly because some people believe (the Fed) needed to start it now," said John Briggs, RBS head of strategy, Americas. "It's the fact they did not start the process more vehemently."