FOMC minutes: Eyes on Fed’s plans for balance sheet normalization – Nomura
|Analysts at Nomura present a detailed preview of the key points to watch out for in today’s release of the FOMC January meeting minutes scheduled at 1900 GMT.
Key Quotes:
“We expect more clarity regarding the FOMC's plans for balance sheet normalization from the minutes of the January FOMC meeting. The minutes from the two preceding meetings - November and December - included important sections on the balance sheet.
We believe the corresponding section of the January minutes will confirm the Committee's plans to end balance sheet normalization by end-2019.
The Committee has been clear that rates are on hold for the time being. A key issue is the set of circumstances that would drive the FOMC to raise rates.
In his post-meeting press conference Chair Powell suggested that clear evidence of upside pressure on inflation was a necessary condition for raising rates.
It will also be interesting to see if there was discussion of what would drive the Committee to lower interest rates.”
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