Goldman Sees Action Brought Forward Post-Powell

Following Powell's speech, Goldman Sachs now sees the Fed taking action on forward guidance and asset purchases at the September FOMC rather than the November meeting (they had previously seen the Fed's framework review being wrapped up at the Sep meeting, opening the door to action in Nov). But they also see a delay until November as as possible in light of the 'at some point' language" n the July minutes.

They also see today's unveiling (which they described as 'roughly in line with expectations') as inconsistent with further "meaningful changes" to the tools and communications areas of the framework review:

"Neither Powell's speech nor the revised statement noted meaningful changes arising from the tools or communication practices sections of the review. We take this to mean that there are no major official changes in those areas. This was a surprise relative to our expectation that the FOMC would add yield caps and targets to the toolkit in principle, but without expressing an intention to use them anytime soon."