The minutes of the Federal Reserve's August 5 meeting were recently released and they were downright depressing: "labor markets had softened further, financial markets remained under considerable stress, and that these factors, in conjunction with still-elevated energy prices and the ongoing housing contraction, would likely weigh on economic growth in coming quarters." Cheery meeting, no?

What's worse, the minutes said there are "downside risks" to this already gloomy outlook. What worries the Fed the most is the toxic brew of weak growth and weak banks that could cause a downward spiral of growth, or as they say, an "adverse feedback loop." That's Fedspeak for "we can't see the light at the end of the tunnel!"

Another telling point in that all Fed members want the next move to be an interest rate hike. Another rate cut would signal that economic conditions are grave. In my view, any future rate hike is off table until Election Day passes. What's important for us is that the Fed is finished cutting rates. This means that energy and exports will continue to lead economic growth for the foreseeable future since the job market and housing market is extremely soft.