Morgan Stanley FOMC Preview: Wait For September

No major changes tomorrow. Fiscal policy remains in active debate, and the
FOMC will go into the meeting without a clear sense of the size,
scope, or composition of the next round of fiscal support.

Press conference: Details of forward guidance / asset purchases / policy
framework review discussions likely to emerge.

Fwd guidance: Before the FOMC communicates a policy that seeks to run
inflation above 2%, it will likely want to communicate the adoption of a new
inflation targeting framework that includes a make-up strategy that would,
in principle, call for such an overshoot. So change to policy framework at Sep
FOMC, w stronger fwd guidance implemented at the same time.

Balance Sheet: Potential for discussion of re-branding of the Fed's asset
purchase program as aimed at providing policy accommodation. Could open
door down the road to extending duration of purchases, but little rush here.