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February 14th - On the afternoon of the 13th local time, thick smoke was seen billowing from the direction of the Nik López oil refinery in Havana, the capital of Cuba, suspected to be a fire.On February 14, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with US Secretary of State Marco Rubio on the sidelines of the Munich Security Conference on February 13. Wang Yi stated that President Xi Jinping and President Trump have provided strategic guidance for the development of China-US relations. We should work together to implement the important consensus reached by the two heads of state, making 2026 a year in which China and the US move towards mutual respect, peaceful coexistence, and win-win cooperation. Dialogue is better than confrontation, cooperation is better than conflict, and win-win is better than zero-sum in China-US relations. As long as we uphold the principles of equality, respect, and mutual benefit, both sides can find ways to resolve each others concerns and properly manage differences. Both sides should work together to continuously expand the list of cooperation and reduce the list of issues, so that China-US relations can embark on a stable, healthy, and sustainable development track, sending a more positive message to the world. Both sides agreed that the meeting was positive and constructive. Both sides agreed to jointly implement the important consensus reached by the two heads of state, leverage the coordinating role of political and diplomatic channels, serve high-level interactions between the two countries, strengthen dialogue and cooperation in various fields, and promote the stable development of China-US relations.February 14th - Gold and silver futures are poised for gains this week. The near-month gold contract rose 1.4% this week, marking its eighth consecutive week of gains in the past ten weeks. The near-month silver contract rose 1.5% this week, ending a two-week losing streak and marking its eleventh consecutive week of gains in the past 15 weeks. Antonio Di Giacomo of XS.com stated in a report that despite volatility in the precious metals market, demand for safe-haven assets remains, supporting the rise in gold and silver prices.Amazon-backed nuclear energy company X-Energy Reactor Co. has received approval from U.S. regulators for its nuclear reactor fuel.Lawyers say a Pennsylvania jury found Johnson & Johnson (JNJ.N) liable for a woman’s diagnosis of ovarian cancer.

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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