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On July 20th, the Ministry of Commerce held a national teleconference on July 17th to advance the mid-year work of the consumer goods trade-in program. The meeting summarized the progress and achievements of the policy implementation in the first half of the year and deployed key tasks for the next stage. The meeting emphasized that all regions and relevant departments should further enhance their political awareness, establish and practice a correct view of performance, and implement the consumer goods trade-in policy meticulously and effectively with a persistent and dedicated approach. They should further intensify their efforts, strengthen inter-departmental coordination, widely publicize the policy, and expand its coverage. They should also continuously enrich offline consumption scenarios, optimize the subsidy review and disbursement process, facilitate public participation in and enjoyment of the policy, and enhance the publics sense of gain.Citigroup lowered its price target for IBM (IBM.N) from $375 to $255.Citigroup raised its price target for JPMorgan Chase (JPM.N) from $325 to $360.Preliminary plans indicate that Angola will load 34 tankers of crude oil in September, compared to 35 tankers planned for August.On July 20th, Citigroup strategists stated that the widely discussed "Big Seven" tech concept is "no longer applicable" in assessing investment opportunities in the US AI sector. The strategy team, led by Scott Chronert, suggested that investors should turn their attention to a broader range of stocks that have consistently been major drivers of earnings growth and share price increases for the S&P 500. They recommended focusing on the so-called "growth cluster," a group that includes not only large-cap tech stocks but also most companies benefiting from AI infrastructure development. Chronert stated that this group accounts for more than half of the S&P 500s total market capitalization and contributes nearly 48% of earnings. After driving the S&P 500 to record highs in recent years, the "Big Seven" tech index is projected to underperform the market by 2026 as investors favor sectors expected to benefit from massive AI capital expenditures.

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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