EUR/USD 1.14277
0.362%
Gold 4017.86
-1.318%
Oil 70.367
1.414%
USD/JPY 161.958
0.128%
GBP/USD 1.32588
0.461%
GBP/JPY 214.745
0.592%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
According to Interfax news agency, Russian Deputy Prime Minister Novak said that Russia is still considering implementing a diesel export ban.Sources say Apple (AAPL.O) is concerned about the leak of iPhone 18 Pro related documents on the dark web.According to sources and related documents, Apple (AAPL.O) supplier Tata Electronics was hacked, and unreleased documents related to the iPhone 18 Pro have been uploaded to the dark web. The leaked information includes supplier lists, component details, and photos of the iPhone 18 Pro.On June 30th, the Wall Street Journal analyzed that although Federal Reserve Governor Cook emerged as a direct winner in the Supreme Court ruling, the biggest beneficiary might be Warsh, who just took office as Federal Reserve Chairman in May. The US Supreme Court ruled to prevent President Trump from removing Cook from office, reaffirming the protections granted to Federal Reserve governors by Congress. This means the president cannot easily remove a Federal Reserve governor on controversial grounds, thus limiting the space for pressuring the Fed through replacements and providing institutional guarantees for Warsh to lead the Fed more independently. The analysis points out that if the president could easily dismiss a Federal Reserve governor and replace him with a like-minded official, the Feds independence would be severely weakened, and Warsh would find it difficult to manage the institution. Investment manager Mark Spindall stated that allowing the president to remove governors on flimsy grounds and fill the vacancies with "loyalists" would undermine Warshs ability to focus on achieving the Feds policy objectives. However, the report believes that this ruling does not completely eliminate the possibility of presidential pressure on the Fed; the Feds future independence still depends on how Trump treats Warsh, whom he personally appointed, and whether the Supreme Courts 5-4 ruling will be upheld in future cases.Iranian Deputy Foreign Minister: Experts from Iran and Oman will begin talks on this matter in the coming days.

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