FOMC - this is what they are concerned about.... Excessive risk....

Is this major signal to take profit in High Yield Bonds? – Probably…but wait for confirmation of the charts and flows….

(Link from WSJ: Fed split over how long to keep cash spigot open)

The main comments (Copy and paste from the above link):

• '… show officials concerned that the current easy-money policies could lead to excessive risk-taking and instability in financial markets'
• ' Fed might have to taper its controversial bond buying before the job market fully recovers, according to the January minutes.'
• 'Fed Chairman Ben Bernanke said in an appearance at the University of Michigan last month, the Fed "needs to think about financial stability and monetary, economic stability as being in some sense the two key pillars of what the central bank tries to do'
• 'Fed officials aren't convinced these recent signs point to any immediate danger to the U.S. financial system. But they are debating whether Fed programs could lead to future financial turbulences and whether the programs will be more difficult to unwind later, as they grow'
• 'Jeremy Stein, a Federal Reserve governor, likened the Fed's challenge to that of a ship's crew, which must distinguish chunks of ice from dangerous, deep-rooted icebergs. A lot happens in markets beneath the surface, beyond the notice of regulators, he said in a recent speech: "We should be humble about our ability to see the whole picture, and should interpret those clues that we do see accordingly'   - (Fed Governor Jeremy Stein – Feb. 7^th, 2013 – Overheating in Credit Markets: Origins, Measurement, and Policy Responses)