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According to Iranian state media, the Iranian Islamic Revolutionary Guard Corps struck a stronghold of a separatist group in northern Iraq.On May 31, European Central Bank (ECB) Governing Council member Pereira stated that the ECB should not hesitate to act given persistently high consumer price pressures. In a media interview on Saturday evening, he said, "I think its better to act sooner rather than later to avoid a larger second-round effect. When there is a potential inflationary spiral, I tend to act more quickly and decisively." These comments come ahead of the ECBs monetary policy meeting on June 10-11, when markets and economists expect officials to raise interest rates by 25 basis points.On May 31, Federal Reserve Governor Waller stated during a panel discussion at the 32nd Dubrovnik Economic Conference that the global adoption of stablecoins could amplify the influence of Federal Reserve policy. "For countries that adopt stablecoins, its like a fixed exchange rate system," he said. "Youre inputting US currency costs, so in more countries that use stablecoins, it actually expands the reach of US monetary policy."May 31 - According to a report by the German newspaper Welt am Sonntag on May 30, citing an anonymous Pentagon source, the United States plans to accelerate its troop withdrawal from Europe and will submit a related plan to its NATO allies next month.May 31st - A recent survey indicates that over 1,000 food items will see price increases in the Japanese market this June. According to Japanese media, rising costs of raw materials and packaging materials due to the situation in the Middle East are expected to continue in the coming months. Teikoku Databank surveyed 195 major food and beverage manufacturers nationwide, inquiring about their price increase intentions. The results show that 1,078 food items will see price increases in June, including processed foods, seasonings, and cooking oil. Instant noodles are expected to see price increases of 6% to 10%, cooking oil 11% to 15%, and potato chips 5% to 30%.

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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