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On September 22, the foreign ministers of the G7 countries called on Iran to halt its arms and support support to the Houthi rebels in Yemen, saying it constitutes a dangerous escalation pattern that could disrupt international trade and create global instability. The foreign ministers of the United Kingdom, Canada, France, Germany, Italy, Japan, and the United States issued a statement after meeting on the sidelines of the UN General Assembly, saying: "We condemn in the strongest terms the unacceptable attacks carried out by the Houthis in Yemen and against Saudi Arabia." "We call on the Houthis to immediately cease all military operations, all threats and attacks against civilian shipping, and to genuinely return to the political process."Market news: South Korea briefed lawmakers on nuclear power plants, Texas power plants, and Alaskan liquefied natural gas projects, with a focus on the Texas energy project.On September 22, South Korean Minister of Trade, Industry and Energy Kim Jong-kwan stated that the government has selected its first project under the $350 billion investment agreement reached between South Korea and the United States, and will brief lawmakers on two other projects under consideration. Seoul has not yet decided whether to proceed with the other two projects, but both reflect "the common interests of both countries." Kim Jong-kwan did not provide further details. After being briefed, South Korean lawmaker Chung Chin-ook stated that South Korea has decided to include a gas-fired power plant in Texas as the first investment project in the US under the aforementioned trade agreement. As part of a larger-scale nuclear energy investment plan under study, South Korea is discussing with the US investment in two APR1400 nuclear reactors designed in South Korea. South Korea is also seeking to acquire a 5% to 10% stake in Westinghouse Electric, a US nuclear power company. The South Korean lawmaker noted that the Alaska LNG project has not yet been confirmed for inclusion in the US investment plan.South Koreas Minister of Industry: The Committee on Investment in the United States (CFIUS) needs to review and approve South Koreas investment plans.G7 statement: Irans actions could disrupt international trade and lead to global economic instability.

The Devil Is In The Details: Gold Analysis - Federal Reserve Minutes

Larissa Barlow

Apr 07, 2022 10:33

Analyses of Federal Reserve Minutes 

While both the FOMC statement and Chairman Powell's press conference provide market participants with information about the FOMC's updated and revised monetary policy, it is the release of the minutes that provides investors with significantly greater clarity and understanding. The devil, as they say, is in the details.

 

The Federal Reserve issued the official minutes from its March FOMC meeting today, providing insight into the central bank's current plans to begin unwinding its balance sheet assets. Beginning in March 2020, the Federal Reserve will add around $4.6 trillion to its balance sheet by purchasing $120 billion monthly in mortgage-backed securities ($40 billion) and US Treasury securities ($80 billion), bringing their total to just over $9 trillion.

 

According to Federal Reserve Governor Lael Brainard, the Fed intends to employ a mix of interest rate rises and a quick run-off of the balance sheet to bring US monetary policy closer to neutral later this year.

 

However, the minutes released today imply that the Federal Reserve will unwind around $3 trillion over the next three years, reducing its $9 trillion balance sheet to $6 trillion. While the Fed appears to be indicating a quick runoff of its balance sheet, the reality is that the Federal Reserve's balance sheet will be nearly $2 trillion larger than it was prior to the epidemic.

 

"Participants continued their discussion on plans to reduce the size of the Federal Reserve's balance sheet in a manner consistent with the methodology outlined in the Committee's Principles for Reducing the Size of the Federal Reserve's Balance Sheet, announced following its January meeting."

 

Additionally, the minutes stated, "While no decision was made regarding the Committee's plan to reduce the Federal Reserve's balance sheet at this meeting, participants agreed that significant progress had been made on the plan and that the Committee was well positioned to begin the process of reducing the balance sheet's size as soon as after the conclusion of its upcoming May meeting."


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