FOMC minutes in the limelight – BBH

Sandeep Kanihama FXStreet Contributor

According to the analysts at BBH, the FOMC minutes that be released in the afternoon which will garner maximum investors attention.

Key Quotes

“There will be two important aspects of the FOMC minutes that will attract attention. First, the Fed will introduce confidence cones around its forecasts. This may help investors have a better appreciation for the forecasts, and surely why they are not point-specific promises. Second, the FOMC likely had its first formal discussion of the balance sheet. The key issue for the market is when and how it will be addressed.”

“The modification of the rolling maturing issues into new issues is expected to take place very late this year or early next year. It is not clear whether the Fed will focus on the MBS or Treasury portfolio or both. There are a couple of caveats. These discussions are still early in the process and there will likely be a wide spectrum of views which later will coalesce around two or three.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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