US DATA: A few economists chiming in after the FOMC minutes
including Goldman economists who say even when taking into account the
Fed’s “twist” at the last meeting, the “minutes have a dovish tilt in
that policymakers considered” highlighting that some Fed members
advocated for more aggressive measures. JPM economists say the FOMC
minutes suggests the FOMC “is likely to change communications at the
upcoming meeting in order to more explicitly tie the funds rate guidance
to economic conditions and to the Committee’s forecast for those
conditions.” Risk, JPM says, is for the economic landscape to improve,
causing no Fed auction. JPM notes “in the past two years the Fed has not
always shown steadiness of purpose, as every run of a few months of okay
data is met with talk of exit strategies,” but they say more likely is a
change the forward rate guidance.