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The China Earthquake Networks Center automatically determined that an earthquake of approximately magnitude 3.8 occurred near Liunan District, Liuzhou City, Guangxi Province at 08:13 on May 20. The final result is subject to the official rapid report.The President of the Council of the European Union: The Council of the European Union and the European Parliament have just reached a provisional agreement on the implementation of two regulations on EU tariff reductions as outlined in the EU-US Joint Declaration.Futures News, May 20th: Domestic supply remains at a low level, and inventories at major ports are expected to continue to decline. However, downstream orders are weak, demand is insufficient, and there are many unstable factors in the Middle East. Oil prices have weakened from their high levels, and the diethylene glycol market may continue to be under pressure in the short term, with downstream buyers remaining cautious.On May 20th, according to foreign media reports, most soybean meal futures contracts on the Chicago Board of Trade (CBOT) fell on Tuesday, with the benchmark contract closing down 0.7%, mainly pressured by profit-taking by long positions. The most actively traded July contract traded between $330.7 and $338.2. Last week, soybean meal futures surged, reaching their highest level since October 2024, and the technical pattern is now severely overbought, indicating a potential correction. EU data shows that as of May 17th, EU soybean imports for the 2025/26 marketing year totaled 11.6 million tons, down 8% year-on-year; soybean meal imports totaled 15.7 million tons, down 7% year-on-year.The European-Mediterranean Seismological Centre reports a magnitude 5 earthquake in southern Iran.

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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