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According to RIA Novosti: Russian troops have occupied Zarichne in eastern Ukraine.Gold prices climbed again on December 24th, continuing their upward trend after hitting a record high in the previous trading session. Swissquote Bank senior analyst Ipek Ozkardeskaya pointed out that gold prices have broken historical highs more than 50 times this year, and the core factors driving the current price increase have not subsided. She stated, "Theoretically, the medium- to long-term outlook for gold remains optimistic."On December 24th, two Japanese government sources revealed that the Japanese government plans to reduce the issuance of new ultra-long-term government bonds to approximately 17 trillion yen in fiscal year 2026, the lowest level in 17 years. This move is intended to address market concerns about an oversupply of government bonds, with yields on ultra-long-term Japanese government bonds recently surging to record highs. The sources indicated that, as part of the new fiscal years bond issuance plan, the Ministry of Finance will also temporarily suspend increases in the issuance of benchmark 10-year Japanese government bonds. This adjustment highlights the Japanese governments sensitivity to the recent continued rise in government bond yields. Sources familiar with the matter said that the Ministry of Finance is considering reducing the monthly issuance of 20-year, 30-year, and 40-year Japanese government bonds by 100 billion yen each in fiscal year 2026. If this plan is implemented, the total annual issuance of ultra-long-term government bonds will fall to the lowest level since 2009 and is lower than the planned size for the current fiscal year ending in March 2026. The Ministry of Finance declined to comment.On December 24th, Pfizer (PFE.N) announced that a patient participating in a long-term study of its hemophilia drug died after experiencing severe side effects. Pfizers stock price closed down more than 1% that day. In a statement, Pfizer responded to the patients death, saying, "Pfizer, together with the trial investigators and an independent external data monitoring committee, is actively gathering information to better understand the complex, multifactorial circumstances surrounding this event." The company also stated that, based on its current understanding and overall clinical data collected to date, Pfizer does not expect the patients death to have any impact on the safety of patients receiving the drug.Sources say Japan will cut new issuances of ultra-long-term Japanese government bonds to about 17 trillion yen in the next fiscal year, the lowest level in 17 years.

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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