EUR/USD 1.15645
-0.266%
Gold 4331.38
-0.392%
Oil 98.617
1.542%
USD/JPY 154.011
0.213%
GBP/USD 1.35029
-0.171%
GBP/JPY 207.964
0.042%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
September 14th - According to the Financial Times, persistently high inflation has led to a standoff between Trump and Federal Reserve Chairman Warsh this week, with markets bracing for a Fed rate hike despite the presidents demands. Economists warn that the Feds credibility will be at risk if it doesnt support a rate hike on Wednesday, as official data shows the Fed chairman previously stated he needed to see meaningful improvement before avoiding a rate hike, but the data hasnt shown any signs of that. However, a rate hike just weeks before the November midterm elections could anger the president, who has made it clear he wants significantly lower borrowing costs. Trump reiterated on Sunday that the US should have the "lowest interest rates in the world." Trumps National Economic Council Director, Hassett, warned, "If its a rate hike, then the president... Im sure he wont be particularly happy about it."On September 14th, the State Council Information Office held a press conference on the theme of "Starting the 15th Five-Year Plan," where the National Health Commission, the State Administration of Traditional Chinese Medicine, and the National Center for Disease Control and Prevention introduced the decisive progress made in promoting the construction of a Healthy China. Lei Haichao, Director of the National Health Commission, stated that during the 15th Five-Year Plan period, emphasis should be placed on health governance, highlighting the fundamental, long-term, and stabilizing role of health legislation. We will advance legislation in the health field to better protect the public and practitioners, and better adjust various social relationships. Lei Haichao stated that the National Health Commission is drafting a childcare service law, which has entered the review process of the National Peoples Congress. In addition, the Blood Donation Law, enacted more than 20 years ago, is also being revised to adapt to the current new situation of blood supply and demand. During the 15th Five-Year Plan period, the legal foundation in the health field will be further strengthened, and the legal environment will be further optimized.Japans final July inventory growth rate was 0.5%, unchanged from the previous month.Japans capacity utilization index rose 0.5% month-on-month in July, down from 4.10% in the previous month.Japans capacity utilization index was 107.7 in July, compared with 107.2 in 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."


截屏2022-04-07 上午9.59.45.png

Suggestion