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On July 31, at a press conference held today, the China Council for the Promotion of International Trade (CCPIT), representing the Chinese business community, responded to the EUs efforts to accelerate the draft amendments to the Cybersecurity Act and the EUs Industrial Accelerator Act. We urge the EU to fully consider the opinions of the global business community in the subsequent legislative process and to prudently assess the impact of the relevant legislation on Sino-EU business cooperation, the EUs own industrial development, and the stability of the global supply chain. We call on the EU to adhere to the principles of technological neutrality and performance orientation, to delete or substantially modify rules and arrangements that are country-specific or discriminatory, and to effectively safeguard the common interests of existing investments and the common interests of future Sino-EU cooperation. Chinese enterprises are important partners in Europes digital transformation and industrial upgrading. The Chinese business community is willing to continue to strengthen cooperation with the EU to jointly promote cybersecurity governance and green economic development, maintain an open, fair, and non-discriminatory market environment, and jointly ensure the stability and smooth operation of global industrial and supply chains.Bank of Japan: Will assess the impact of the situation in the Middle East on the timing and pace of interest rate hikes.Bank of Japan: From the perspective of supporting Japans growth-oriented investment expansion, it is crucial to achieve price stability through the appropriate implementation of monetary policy.Bank of Japan: The Japanese economy is likely to continue to grow moderately, albeit at a slower pace.The Bank of Japan stated that the impact of rising import prices warrants close attention, as it is expected to push up prices for various goods, including durable goods.

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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