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The UAE strongly condemned Irans renewed aggressive strikes against Bahrain, Kuwait, and Jordan.On July 21st, ByteDances XR (Extended Reality) business, PICO, recently completed a change in its head: due to personal planning reasons, founder Zhou Hongwei will no longer serve as the head of PICO, and Li Xiaokai will take over as head, fully responsible for PICOs business. It is understood that this management handover will not affect PICOs established strategic direction, R&D work, or product plans. This year, PICO will launch a brand-new Mixed Reality (MR) product as planned. As the founder of PICO, Zhou Hongwei has made significant contributions to PICOs growth over the past 11 years. PICO has internally issued a notice confirming Zhou Hongweis departure from the company and expressing gratitude for his long-term dedication and contributions.In a report, Magdalene Teo, Asia fixed income analyst at Julius Baer, noted that with renewed escalation of tensions between the US and Iran, most Asian central banks are likely to maintain their current interest rates and remain hawkish. The report stated that economic growth in Asia is expected to slow this year due to supply chain disruptions and the ongoing impact of global energy price shocks, with both consumers and traditional industries facing pressure. Teo anticipates that the central banks of Japan, South Korea, Indonesia, and the Philippines will maintain a hawkish stance. She added, "However, if US economic data continues to weaken, a weaker dollar could provide some room for Asian central banks to support economic growth."Sanjay Raja of Deutsche Bank stated that the latest UK employment data shows the labor market remains fragile, but initial signs of stabilization have emerged. The data shows the UK unemployment rate remains relatively high at 4.9%, and wage earners have declined again. However, job vacancy data has improved, with the number of job advertisements increasing for the first time since December last year; in the three months to May, layoffs fell to 108,000, the lowest level since July last year. Raja said that the Bank of Englands survey suggests the job market may be turning around, with employers now planning to maintain largely stable staff sizes. Slower wage growth will also be reassuring for the Bank of England as it pushes inflation back to its target level.Kremlin: Russia will continue to crack down on ships involved in supplying the Ukrainian military.

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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