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On September 9th, local time, the U.S. Southern Command announced that on the 8th, the Joint Task Force for the Western Hemisphere (JTF-WHEM) intercepted a floating refueling station in the eastern Pacific Ocean that day, which was supporting illegal drug trafficking activities at sea. Intelligence confirmed that the vessel was linked to the Ecuadorian drug trafficking terrorist organization "Los Choneros". The personnel taken from the ship have been handed over to Ecuadorian authorities. After inspecting the vessel and disembarking the crew, the U.S. military sank the ship.On September 9th, Colombian President Eduardo de la Espley met with visiting US Secretary of State Marco Rubio in the northern coastal city of Barranquilla on the 8th. Following the meeting, de la Espley stated that Colombia and the US would strengthen cooperation in areas such as regional security, drug control, border affairs, and investment and development. Colombian Senator Iván Cepeda issued a statement via social media opposing Rubios visit and questioning whether certain arrangements reached between the de la Espley government and the US in security and military fields infringed upon Colombian national sovereignty. Cepeda also criticized the US-led drug control policy, arguing that the so-called "war on drugs," which has lasted nearly 50 years, has failed to fundamentally solve the drug problem.Xi Jinping sent a congratulatory message to North Korean leader Kim Jong Un on the 78th anniversary of the founding of the DPRK.On September 9th, according to Axios, US President Trump announced that the US will ban imports of Canadian alcohol, certain dairy products, and large motorcycles; this move marks a sharp escalation in the trade war, primarily driven by tariffs. These import bans will take effect on September 29th; unlike simply raising tariffs and causing price increases, the bans effectively cut off the access of the relevant Canadian goods to the US market. Trump is implementing these bans under Section 338 of the Tariff Act of 1930; this section authorizes the president to prohibit imports of goods from countries that maintain or exacerbate discriminatory practices against US commerce. The White House also announced on Tuesday that it will extend the existing 50% tariff measures to dozens of additional Canadian products—including certain steel and aluminum products, furniture, and paper—effective September 15th.Japans broad money supply liquidity rate was 4.4% year-on-year in August, unchanged from the previous month.

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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