As scheduled, the FOMC has released the minutes from it's recent policy meeting ending April 29th.  Here is the full text.

Some of the highlights are as follows:

• GDP forecasts cut again.  Previous range was -1.3 to -0.5.  New forecast is -2.0 to -1.3.  2010 still seen turning positive again
• Most Fed Governors see a "return to long run potential" taking 5 to 6 years
• Most expected gradual recovery with elevated unemployment through 2011
• FEWER saw risk to inflation outlook
• some note risk that inflation could stay persistently too low
• Most expected Inflation to be subdued over next few years
• Most agreed inflation risks are balanced
• Economy still facing significant downside risks.
• Available data indicates stabilization still tentative
• Some evidence emerging that the RATE of contraction is starting to decrease.  (aka "less bad")
• Many believed risk of protracted deflationary period had decreased
• Security Purchases remain intact
• SOME THOUGHT SECURITIES PURCHASES SHOULD BE INCREASED IN ORDER TO STIMULATE RECOVERY
• Long run forecasts unchanged
• 2009 core PCE target revised upward from .9 - 1.1 to 1.0-1.5
• 2009 unemployment forecast now 9.2 to 9.6 % versus 8.5 to 8.8% previously

Here's how Stocks and the 10 yr have reacted:

More analysis will follow, but here's what's important: don't read too much into this rally.  Without a substantial treasury rally, MBS profit takers will come out and prices will fall.  In addition, the fact that we haven't seen stocks sell off MORE indicates the possibility of a bounce in a bit.  There is always an initial "I think it's going this way!" spike, but it takes a bit more time for the markets to decide how they feel.  Stay tuned for more shortly.