19 Aug 2015
What to expect from today's FOMC minutes? - Nomura
FXStreet (Bali) - Wednesday's FOMC minutes, according to the North America Economics Team at Nomura, will be scrutinized for any hints on how the Committee is assessing the critical issues ahead of the widely expected September FOMC meeting, where a 50/50 chance of a rate hike is presently being priced in.
Key Quotes
"Although we now have most of the important economic data for the month of July, the critical issue of what the FOMC is likely to do at its September meeting remains uncertain."
Recent data have been ambiguous and there have been few substantive comments from FOMC participants."
"Under these circumstances we think it remains a close call whether or not the FOMC hikes in September or December."
"Currently, the implied probability of an increase in interest rates in September is 50%, after having been as high as 60% and as low as 20% in the last two months. Tomorrow, the Federal Reserve will publish the minutes to the July FOMC meeting."
"This is the last major communication from the FOMC before its policy meeting in September. The FOMC has said that its interest rate decisions will be made on a meeting-by-meeting basis and that it will not signal decisions in advance."
"In recent weeks, only one FOMC participant – President Lockhart – has publicly discussed his views on the upcoming interest rate decision. We do not expect the FOMC to use the minutes to send a clear signal about its near-term intentions."
"That said, the relative dearth of recent public comments from FOMC participants and the markets’ recent volatility suggest that the minutes will be scrutinized for any hints on how the Committee is assessing the critical issues."
Key Quotes
"Although we now have most of the important economic data for the month of July, the critical issue of what the FOMC is likely to do at its September meeting remains uncertain."
Recent data have been ambiguous and there have been few substantive comments from FOMC participants."
"Under these circumstances we think it remains a close call whether or not the FOMC hikes in September or December."
"Currently, the implied probability of an increase in interest rates in September is 50%, after having been as high as 60% and as low as 20% in the last two months. Tomorrow, the Federal Reserve will publish the minutes to the July FOMC meeting."
"This is the last major communication from the FOMC before its policy meeting in September. The FOMC has said that its interest rate decisions will be made on a meeting-by-meeting basis and that it will not signal decisions in advance."
"In recent weeks, only one FOMC participant – President Lockhart – has publicly discussed his views on the upcoming interest rate decision. We do not expect the FOMC to use the minutes to send a clear signal about its near-term intentions."
"That said, the relative dearth of recent public comments from FOMC participants and the markets’ recent volatility suggest that the minutes will be scrutinized for any hints on how the Committee is assessing the critical issues."