10 quick previews of the FOMC Minutes
For bank trade ideas, .
Today’s focus will be on the release of Fed minutes. Remember the statement from the 1 Feb meeting suggested inflation ‘will reach 2%’ but fell short of bringing rate expectations forward, thus pushing US real rates lower allowing the USD to fall towards its cyclical low points within the following week. Overnight, the Fed’s Mester (non-voter) suggested the Fed has no interest in ‘surprising’ markets. While this statement might be read by many to mean that Fed may not opt for higher rates in March, it could also be read as the Fed having the potential intention to reprice front end rate expectations to provide the Fed with full flexibility to decide on rates whenever it wants to. The likelihood of the Fed minutes providing USD support maybe higher than the opposite outcome.
