FOMC sees progress toward liftoff but notes Greece

The June FOMC minutes revealed "a number of reasons to be cautious" among Fed officials - including uncertainty about Greece - yet the broad conclusion among the voters was that the economy was "continuing to approach" the threshold for liftoff, but they "saw room for additional progress" and "would need more information" in order to hike. 

The take-away from the minutes is that September remains a viable option should the recent trend in the data continue. While Greece was cited as one concern, in a separate speech today San Francisco Fed President John Williams suggested it would be "unlikely to overturn the otherwise strong fundamentals of the US economy... it remains an unlikely tail risk." 

"Short of a sizable contagion from Greece or China, we remain comfortable with our call for a September liftoff, albeit with a significant chance that the Fed waits until December",said BofAML Research in a report on Thursday.