Preview of FOMC minutes due Wednesday 07 April 2021

The March 2021 Federal Open Market Committee minutes are due at 1800 GMT 

A snippet via Capital Economics:

  • “The release of the Fed Minutes on Wednesday should provide some indication about how committed the FOMC is to keeping interest rates at current lows. If the minutes bring forward market expectations of interest rates hikes then the US dollar could strengthen, putting downward pressure on commodity prices.”

And, this via Scotia:

  • FOMC minutes may shed further light on the suite of communications offered at the meeting
  • One issue to watch for is potential discussion among FOMC participants on the topic of how they might change their policy rate views for lengthy holds if their relatively upbeat forecasts for growth, jobs and inflation were to come to fruition. That’s because Chair Powell said in the press conference that “part of that is wanting to see actual data and not just forecasting it.” 
  • So, while I doubt it, it would be interesting if we saw some form of reference to the frequency of opinions expressed in favour of tightening earlier if forecasts come true and along the lines of the Fed’s usual approach (ie: one, a couple, some, a few, several, many, most, almost all, generally agreed). That’s likely a greater risk as time passes and data rolls in.

Huh …. I thnk its way to early to get any bringing forward of interest rate hikes. 

fed, powell

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