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  • Squawk / Wednesday at 18:12 GMT
    Head of FX Strategy / Saxo Bank
    Denmark
    FOMC Minutes : reveal a robust discussion of how the Fed will roll out a reduction of its balance sheet, with "almost all" FOMC voters arguing in favour of a 2017 start to quantitative tightening (QT) via "roll-off caps". The minutes mention that an unemployment at or below 4.5% is below the Fed's long run level and suggest that some believe that recent lower inflation is due to transitory factors while others expressed concern on the inflation front. This and the other language is not enough to excite interest in upgrading the Fed's rate hike path as STIR futures rally a basis point or two in immediate reaction and the USD weakens slightly.

    Some might argue that the FOMC minutes are from a meeting that came before all of the recent political noise that has so distracted markets, so the potential impact of the QT discussion may be somewhat reduced until the Fed updates its views at the mid-June FOMC meeting. But let's be wary of believing in the market's initial reaction.
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    17h
    AIRLINE AIRLINE
    Agree Fashionapolis, and I did also not see any words from Janet Yellen or the other members at Fed for their willingness to be locked up for...
    17h
    Fashionapolis Fashionapolis
    my guess is they will hike 1 or 2 more to 1.25% or 1.5% then talk about balance sheet trimming towards end of the year in Q4....
    17h
    Fashionapolis Fashionapolis
    i believe they will hike to 1.5%, take a pause and then focus on balance sheet trimming for next year
  • 1d
    Jim Earls Jim Earls
    First downgrade of China rating by Moody's since 1989-Is that not significant?
  • 1d
    Fashionapolis Fashionapolis
    As mentioned yesterday, Fed chief Janet Yellen could try to push a bit harder on starting to unwind the balance sheet as she may be in “legacy...
    1d
    Jim Earls Jim Earls
    More like "zombie mode" after almost 9 years of sub par 1% Fed Funds Rate-LOL.
  • 2d
    Morris Morris
    Implication to the Dollar Index, then Commodities and Equity Markets?
    1d
    Morris Morris
    Hi! John. No need for this as I got response from other contributors on the site. Thanks
  • 2d
    fxtime fxtime
    Yet again no one knows the sum net value of Noble group..the paucity of group accounting and questionable asset base is nothing short of a mine field...