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Minutes: ING Sees Possible Added Layer Of Hawkishness; BMO Eyes CPI Insight

FED
  • ING: The minutes "could add a layer of hawkish communication, as we suspect Powell is more likely to have given a dovish spin to the discussions that took place at that meeting but, here too, the market might decide not to care."
  • BMO FICC: The minutes "will provide context for the Committee's current assessment of inflation and the overall pace of the recovery. The discussion didn't have the benefit of the June employment report, although it will nonetheless be useful to learn how participants are characterizing the improved jobs market and reports of labor shortages in certain sectors. In addition, any insights on the trends in consumer prices will undoubtedly garner attention with the path toward a flatter curve in the event of a less-dovish skew well established at this point."
  • Credit Suisse: "There is likely to be a more-thorough discussion of reducing asset purchases in the minutes... Policy is not tightening yet, but the extreme patient stance the Fed adopted during the pandemic appears to be coming to an end."

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