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.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
