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The Reserve Bank of Australia will release the minutes of its February monetary policy meeting in ten minutes.February 17th - According to foreign media reports, former Bank of Japan (BOJ) policy board member Seiji Adachi stated that the BOJ is likely to use the abundant new data available in April as an opportunity to raise interest rates, ignoring market speculation about a possible rate hike in March. Adachi said in an interview on Monday, "A March rate hike would be risky because it would be based on expectations rather than confirmation signals. April will provide a large amount of data to confirm improvements in underlying inflation." Adachis view aligns with the growing market expectation that the board, led by Governor Kazuo Ueda, might act in the spring—earlier than most economists predicted after the last rate hike in December. He stated that while there are concerns that Prime Minister Sanae Takaichi might hinder the BOJs policy normalization process, especially after her landslide victory in the election last week, she is unlikely to prevent rate hikes, as such action could be counterproductive. Adachi said, "Sanae Takaichi seems to have become very sensitive to market dynamics. If she tells the BOJ not to raise rates, the potential market reaction would be a depreciation of the yen."A Reuters poll of 29 economists showed that 27 of them believed the Indonesian central bank would keep its 7-day reverse repo rate unchanged at 4.75% on February 19.US President Trump: I will indirectly participate in the Iran negotiations; Iran wants to reach an agreement.February 17th - According to tech journalist Marc Gurman, Apples upcoming iPhone 18 Pro and Pro Max models will "not have major updates." Gurman stated that the iPhone 18 Pro series will only be "minor tweaks to last years iPhone 17 Pro and Pro Max." He likened this upgrade to Apples usual practice of adding an "S" to the name of minor iPhone facelifts. However, the new phones will still include several important internal upgrades, such as a new camera system with a variable aperture, the A20 chip, and a custom C2 baseband chip. Nevertheless, the new Pro models are unlikely to be "the star of Apples iPhone launch event this fall." Instead, Apples first foldable iPhone will be the focus.

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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