Fed Minutes Will Be Parsed for News on Balance Sheet Plans
06 July, 2017, 00:24 | Author: Paula Vaughn
Fed Chair Janet Yellen indicated following the June meeting that the Fed would start gradually "normalizing" its $4.5 trillion balance sheet later this year. Others pushed for more time to first see how the broader US economy fares during the second half of 2017.
Fed officials updated their balance-sheet policy in the gathering, laying out a path of gradual reductions with caps.
Investors were watching the minutes for further clues as to when the Federal Reserve might begin to unwind its massive balance sheet.
The increase was the Fed's second of the year and was taken as a vote of confidence in the US economic recovery and future pace of growth.
For agency and mortgage-backed securities debt, the cap starts at $4 billion, and rises by $4 billion every three months until it hits a $20 billion a month.
William Dudley, the president of the Federal Reserve Bank of NY, has suggested the Fed might need to raise rates more quickly in order to achieve its goals. The minutes show a Fed divided between officials comfortable with the unemployment rate undershooting their estimates about the sustainable level and those who fret that "a substantial and sustained unemployment undershooting" could trigger inflation or financial instability.
In terms of rates, the Fed funds futures market was pricing in a 55% chance of a hike before the FOMC minutes and pricing in a 56% chance now.
Washington political gridlock is also starting to creep into the outlook of the Fed's business contacts, the minutes showed. It noted that some large companies are curtailing spending "in part because of uncertainty about changes in fiscal and other government policies".
Yellen begins her semi-annual testimony to Congress on July 12 before the House Financial Services Committee.
Several Fed officials expect the Fed to keep raising the rate "in coming years", saying that would help stabilize inflation at 2 percent. This assessment would take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and worldwide developments. They added those trends weren't likely to persist in the medium term. The Fed foresees one additional rate hike this year without specifying when that could occur.
The Fed's preferred measure of underlying inflation slipped again in May to 1.4 percent, the Commerce Department reported on Friday, and has run below target for more than five years.
Only Oklahoma, Illinois, and Washington, D.C. saw prices increase, albeit by one cent each, while Hawaii and ME remained flat. Meanwhile, the per-gallon price in Broward County on Monday was $2.22, 5 cents less than a week earlier.
Iran hopes to produce 6 million barrels of crude oil and condensates a day in five years, he said, up from some 3.6 million today. It signed a multi-billion dollar deal Monday with French oil giant Total and Chinese state oil company CNPC .
The swings came on a day that the US stock market closed early at 1:00 pm, on the eve of the US Independence Day holiday. The error occurred after U.S. markets had closed, but still likely gave a fair share of traders a heart attack.
Mr Duterte said that he could indeed extend it and he also threatened to extend it if necessary to the whole country. The martial law is legally limited to 60 days, and the green light of the parliament is necessary to prolong it.
The magnitude of the potential layoffs is unclear, but the WSJ says they will likely occur in offices all around the globe. The impending shake-up may be the result of executive changes within the past year.
The driver, a 56-year-old Cambridge man employed by Metro Cab, remained on the scene and is cooperating with police. It is dotted with picnic tables and state police said the area is used by cab drivers while they take a break.
It's a bit unusual for Atlantic storms to form this early, as they usually pass through in August and September, forecasters say. The unnamed disturbance with showers and thunderstorms is almost stationary about 700 West-Southwest of the Cabo Verde Islands.
Further speaking on the same, Shah Rukh said, "We respect CBFC". "I'm happy that I got a chance to work with The Shah Rukh Khan ". Meanwhile, Shah Rukh Khan was slightly delayed in his arrival at the event and tweeted, "Will be at Tamasha in 45min".
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He will also be seen in " Avengers: Infinity War ", which is slated to release in 2018. A return to the Spider-Man franchise will no doubt be a box office smash.
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A medical team quickly ran out to treat the Dimension Data team rider, jogging into the oncoming stream of riders to reach him. For his part, Sagan - who won Stage 3 at Longwy on Monday - had apologised for his actions but claimed he was not at fault.
Louisiana Sec. of State won't comply with voter info request
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