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According to the Financial Times, several banks, including JPMorgan Chase and Morgan Stanley, are looking to shift risk to avoid being “overwhelmed” by data center debt.On May 4th, an Al Jazeera reporter pointed out that regardless of what is currently being discussed at the negotiating table, Iranians and Americans are speaking two different languages. What we are seeing may simply be negotiations to maintain dialogue, but this does not guarantee that unexpected events will not occur, triggering a new round of intense conflict. He believes that the differences between the two sides are difficult to bridge. When the US sets "surrender" as its bottom line, while Iran rejects any proposals that approach this situation, he sees no substance in the negotiations. However, the current situation presents a two-way pressure scenario: the US is pressuring the Iranian economy, while Iran is pressuring the global economy. It remains to be seen who will back down first. The risk now is that this situation, perceived as pressure from both sides, could escalate into a stalemate. In this scenario, war would once again loom, especially if Israel were to intervene to break the deadlock.According to Israeli media outlet Ynet, Israel is preparing for an escalation of the situation and has expressed skepticism about the US strategy of containing Iran.On May 4th, local time, Ukrainian President Volodymyr Zelenskyy held separate meetings with the Prime Ministers of Norway, Finland, the United Kingdom, and the Czech Republic in Yerevan, the capital of Armenia, on May 3rd. During his meeting with British Prime Minister Keir Starmer, Zelenskyy stated that Ukraine is willing to launch the next round of trilateral negotiations, with achieving a just and dignified peace being its core demand. Zelenskyy and Starmer also discussed support for Ukraines energy sector. Zelenskyy briefed Starmer on the situation on the front lines and the Russian attacks on Ukraine, emphasizing the need for a unified European air defense system.U.S. Special Envoy Witkov: Washington is currently in dialogue with 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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