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JPM FOMC Preview: Stage-Setting


JPMorgan FOMC Preview: No changes to policy at this meeting; possible
press conference more interesting than the statement.

- Possible that the Fed could issue a new Statement on Longer-Run Goals
and Monetary Policy Strategy, though neither Fed officials nor media sources
have said much on this topic.

- Powell could discuss progress on the framework review.

- Fwd Guidance: This meeting to set stage for change at Sep meeting.

- Conclusion of framework review will be used to condition the next hike on the
sustainable achievement of 2% inflation – average inflation targeting.
- Balance Sheet: Monthly purchase pace unlikely up for review now.

- Media reports suggest the duration of those purchases could be extended,
though here too we would look for any change in the composition of purchases
to be decided at Sep FOMC.

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