FOMC Minutes eyed for further rate hike clues - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that as for the ‘big event’ of the FOMC Minutes today, we’ll see how they pitch the debate about normalisation against a backdrop of strong asset markets but very soft inflation readings going into the meeting last month.

Key Quotes

“How many times can you put ‘transitory’ into a set of Minutes? We will also crawl over any comments about the plan to start shrinking the Fed’s balance sheet after the summer. I can’t help thinking though, that tomorrow’s services ISM and Friday’s payrolls will be more important in determining how the market feels about the idea of a further rate hike in 2017, than the Minutes.”