FOMC minutes in the limelight - Nomura
|The analysis team at Nomura suggests that today it will be worth looking at FOMC Minutes as of which data and what kind of analysis the FOMC monitored in assessing the economic momentum.
Key Quotes
“At the end of the 2-3 May meeting, the FOMC acknowledged that recent spending data had been weaker than expected. However, it stated explicitly that it viewed “slowing in growth during Q1 as likely to be transitory.” Also, incoming information and our analysis on residual seasonality in real GDP suggest some of the weakness in spending data in Q1 might have reflected the underlying momentum. In this regard, it would be worth looking at which data and what kind of analysis the FOMC monitored in assessing the economic momentum.”
“Moreover, recent data on inflation point to some deceleration in core inflation. Any remark on the FOMC’s assessment on the recent development on inflation would be interesting. Note that since the FOMC meeting, labor markets and inflation data have sent contradicting signals. Nonfarm payroll growth remained steady, but core CPI inflation was weaker than market expectations in March and April. The second month of soft core CPI data may marginally lower some members’ confidence regarding the progress on the Fed’s 2% inflation target. Lastly, the minutes from this meeting may provide some indication of balance sheet adjustment specifics, while FOMC participants appeared to be forging consensus on the operations of balance sheet normalization.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.