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Chart: Speculative Sentiment Index on Thursday, July 16, 2026U.S. Trade Representative Greer: A separate investigation into Vietnams intellectual property issues is underway; the two sides have reached an agreement on export controls.1. Barclays: Expects the Bank of Korea to raise interest rates by 25 basis points. The central bank governor has clearly stated that the central banks policy objectives are unusually aligned in one direction: raising interest rates. 2. Reuters poll: Expects the Bank of Korea to raise interest rates by 25 basis points. 28 out of 31 economists predict the Bank of Korea will raise its benchmark interest rate to 3.00% by the end of the year. 3. HSBC: Expects the Bank of Korea to raise interest rates by 25 basis points, as the won continues to face depreciation pressure, core inflation remains strong, and the outlook for South Korean economic growth has improved. 4. Bank of America: Expects the Bank of Korea to raise interest rates by 25 basis points. The banks stance on the won may be more crucial than the rate hike itself, as policymakers may focus on the wons continued weakness. 5. Scotiabank: Expects the Bank of Korea to raise interest rates by 25 basis points. The governor has previously given strong hints, and South Korean inflation continues to exceed the target, with the wons depreciation exacerbating imported inflation. 6. Citibank: Expects the Bank of Korea to raise interest rates by 25 basis points, and its governor will hint at 25 basis point increases every quarter in the second half of the year; further rate hikes are expected in July and October this year, and January and April next year. 7. KB Financial Group: Expects the Bank of Korea to raise interest rates by 25 basis points. The central bank may raise rates twice this year, but the probability of another rate hike in October is higher than consecutive rate hikes in July and August. 8. NH Investment & Securities: Expects the Bank of Korea to raise interest rates by 25 basis points. The central bank may not provide a specific timetable for further rate hikes to avoid the side effects of forward guidance. 9. Hanwha Investment & Securities: Expects the Bank of Korea to raise interest rates by 25 basis points. This meeting may have an overall hawkish tone. Whether economic growth forecasts are revised upwards and the guidance on the future pace of rate hikes will be key points to watch. 10. Crédit Agricole: Expects the Bank of Korea to raise interest rates by 25 basis points. As the central bank will not update its economic forecasts and forward guidance until August, and oil prices have fallen, the central bank is more likely to raise rates again in October. International Energy Agency Executive Director Fatih Birol: Markets are nervous about the renewed escalation of the conflict with Iran.July 16 – The U.S. government imposed sanctions on several individuals and entities on Wednesday, alleging they belong to an international network assisting Iran in procuring weapons. The U.S. Treasury Department said in a statement that the sanctions target Iranian and Russian nationals, as well as multiple entities located in Iran, Russia, and Nigeria. The Treasury Department stated that Wednesdays sanctions "fully illustrate how Iran uses foreign airlines and transport companies, financial channels, and travel coordinators to conceal the Islamic Revolutionary Guard Corps role in illicit procurement and the global movement of supplies and personnel."

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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