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On August 5th, Texas Governor Greg Abbott ordered a halt to the approval of new data center projects through the states grid interconnection process, citing concerns that surging electricity demand could threaten grid reliability, amid growing opposition to these projects. Texas is poised to become one of the worlds largest data center hubs, with industry forecasts suggesting it could surpass Virginia by 2030 thanks to its abundant land, energy supply, and favorable business environment. However, local opposition to these facilities is growing due to their high energy and water consumption and the pollution caused by the power generation processes. Last month, New York became the first state in the U.S. to suspend large-scale data center construction. In a letter to the Texas Public Utilities Commission and grid operator ERCOT on Monday, Abbott instructed that all planned data centers be audited before any new data center projects can proceed.N-Senhe rose nearly 80%, with a transaction volume exceeding 250 million yuan.As of 09:30 Beijing time, WTI crude oil futures rose 1.14% and U.S. natural gas futures rose 0.60%.On Wednesday, August 5, the Hang Seng Index opened 38.07 points higher, or 0.15%, at 25,890.99; the Hang Seng Tech Index opened 16.13 points higher, or 0.33%, at 4,901.74; the H-share Index opened 10.74 points higher, or 0.13%, at 8,585.0; and the Red Chip Index opened 10.46 points lower, or 0.25%, at 4,134.95.The Peoples Bank of China announced today that it conducted a 5 billion yuan 7-day reverse repurchase operation, with a bid amount of 5 billion yuan and a winning bid amount of 5 billion yuan. The operation rate was 1.40%, unchanged from the previous rate.

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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