NatWest Marketa economists.........>

US TSYS/RESEARCH: NatWest Marketa economists Michelle Girard and Kevin Cummins

said on their Fed call expect the "balance sheet announcement in Sept. and

hiking to resume in December."

- They added that "market participants are waiting for Yellen's speech at

Jackson Hole on Friday (10AM EST). The title of her speech is "Financial

Stability". We think this choice of topic is notable." They said that in FOMC

minutes released last week, "policymakers spent much more time at the July

meeting discussing recent developments in financial market conditions and

financial stability than they did in June. In the June FOMC minutes, there was

just one paragraph (181 words) on "assessing recent developments in financial

markets." In July, that section swelled to four paragraphs (599 words).

Participants discussed the continued low level of longer-term interest rates as

well as the further increase in equities prices that had led to an easing in

financial conditions. They also considered equity valuations in their discussion

of financial stability."