MNI: Canada Apr-Sept Budget Deficit Widens On Spending

CANADA'S TRUDEAU: I CONTINUE TO HAVE GOOD TALKS WITH TRUMP

MNI BRIEF: Little Macro Difference On Rate Oprions- de Guindos

MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CANADA Q3 GDP ANNUALIZED +1.0% AS EXPECTED ON GOVT, CONSUMERS

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Wrightson ICAP: Minutes Could Suggest Potential For Delayed QT Start​

FED

Wrightson ICAP believes the March FOMC minutes "won’t resolve the question of how large the May rate hike will be, but only because the committee itself is not yet sure." However, they "should offer more clarity about the balance sheet outlook."

  • A central question is whether the Fed considers a 50bp hike AND immediately starting QT in May to be "too aggressive". Given that many on the FOMC are open to 50bp in May, it's possible the Fed might push back the QT start date to "soften the impact".
  • The minutes could underline potential for delayed QT if they "express much ambivalence about the timetable for the first net redemptions", but if they "suggest that the committee was inclined to get the QT ball rolling right away, our guess is that the FOMC would follow through with an immediate launch in May."
  • In the end, Wrightson ICAP thinks the Fed will resist finetuning QT, with the upcoming economic data potentially determining whether the May hike is 25 or 50bp, but probably won't alter the runoff schedule.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.