The Federal Reserve's March meeting minutes reveal a consensus among participants on the need to adjust monetary policy due to ongoing economic conditions. A significant majority agreed it would be prudent to begin reducing the pace of the balance sheet runoff fairly soon, favoring a reduction of the monthly asset runoff pace by roughly half. This adjustment primarily involves Treasury securities, with little need seen to alter the pace for mortgage-backed securities. The minutes also highlighted a general concern over the persistence of high inflation and the uncertainty surrounding it, noting the disinflation process is expected to be somewhat uneven. Despite some recent data, there was no increased confidence that inflation is moving sustainably towards the Fed's 2% target. Almost all participants viewed a rate cut as appropriate sometime this year, indicating a shift towards a less restrictive policy stance to better balance the risks to achieving employment and inflation goals. Additionally, some participants noted concern that financial conditions might not be as restrictive as desired.
Fed Minutes: According to the Fed minutes, all governors saw it appropriate to cut this year... -Fed prefers to adjust treasury cap to slow QT runoff, instead of MBS -Fed favors reducing monthly QT runoff pace by HALF
#FOMC minutes 👇 https://t.co/WRB6KRFnCH
FOMC MINUTES SUMMARY - Almost all participants see rate cut as appropriate some time this year - Employment & inflation goals moving into better balance - Most favor reducing balance sheet runoff rate by roughly half - Financial conditions may not be as restrictive as desired,…
Fed minutes on timing of QT: "vast majority of participants thus judged it would be prudent to begin slowing the pace of runoff fairly soon....participants generally favored reducing the monthly pace of runoff by roughly half from the recent overall pace." https://t.co/PtQHPswfxc
FED MINUTES: PARTICIPANTS GENERALLY FAVORED REDUCING MONTHLY RUNOFF PACE BY ROUGHLY HALF FROM RECENT OVERALL PACE
FED MINUTES: A FEW PARTICIPANTS PREFERRED TO CONTINUE CURRENT PACE OF RUNOFF UNTIL INDICATORS SHOWED RESERVES WERE NEARING 'AMPLE LEVEL'
FED MINUTES: VAST MAJORITY OF PARTICIPANTS JUDGED WOULD BE PRUDENT TO BEGIN SLOWING PACE OF BALANCE SHEET RUNOFF 'FAIRLY SOON'
FED MINUTES: SOME PARTICIPANTS NOTED CONCERN THAT FINANCIAL CONDITIONS MIGHT NOT BE AS RESTRICTIVE AS DESIRED, WHICH COULD PUT UPWARD PRESSURE ON INFLATION
FOMC on Taper: "In their discussions regarding how to adjust the pace of runoff, participants generally favored reducing the monthly pace of runoff by roughly half from the recent overall pace."
FED MINUTES: PARTICIPANTS GENERALLY NOTED UNCERTAINTY ABOUT PERSISTENCE OF HIGH INFLATION
FED MINUTES: PARTICIPANTS GENERALLY JUDGED RISKS TO ACHIEVING EMPLOYMENT AND INFLATION GOALS WERE MOVING INTO BETTER BALANCE
⚠️ FED'S 'CONFIDENCE' IN DISINFLATION NOT HELPED BY RECENT DATA, MINUTES SHOW Full Story → https://t.co/u4Wdk8AoCo Federal Reserve officials worried last month that progress on inflation might have stalled and a longer period of tight monetary policy be needed to tame the…
FOMC: Appropriate To Take 'Cautious' Approach To Further Runoff - Minutes - Officials Wanted More Confidence On Inflation Before Cutting Rates - Recent Inflation Numbers 'Disappointing' To Officials - Almost All Saw It Appropriate To Cut This Year - Saw Upside Risk To Inflation…
Fed wants more confidence that inflation is moving toward 2% target, meeting minutes indicate https://t.co/B1oMF69gey
Fed Minutes show policymakers want to slow the pace of balance sheet runoff "fairly soon", cutting the monthly pace in half. No plans to adjust MBS cap.
Fed wants more confidence that inflation is moving toward 2% target, meeting minutes indicate: CNBC
Fed wants more confidence that inflation is moving toward 2% target @CNBC https://t.co/MMOE1b6lCU
🔴 FOMC MEETING MINUTES FOR THE MARCH MEETING https://t.co/FelM2egUse
Fed wants more confidence that inflation is moving toward 2% target, meeting minutes indicate
Fed minutes just came out. Participants generally noted uncertainty about persistence of high inflation. Read them all: https://t.co/E9SOE2vkCK
🔴 FED MINUTES: PARTICIPANTS GENERALLY FAVORED REDUCING MONTHLY RUNOFF PACE BY ROUGHLY HALF FROM RECENT OVERALL PACE.
Fed Minutes: Almost all saw it appropriate to cut this year They also favor reducing monthly asset runoff pace by roughly half (they barely were doing this to begin with)
Fed Minutes Re-Cap Fed Minutes: Some participants noted concern that financial conditions might not be as restrictive as desired, which could put upward pressure on inflation. Fed Minutes: Participants generally noted recent data had not increased confidence that inflation was…
🚨 FOMC MINUTES 🏁ALMOST ALL SAW IT APPROPRIATE TO CUT THIS YEAR 🥕PARTICIPANTS GENERALLY NOTED UNCERTAINTY ABOUT PERSISTENCE OF HIGH INFLATION
🔴 FED MINUTES: VAST MAJORITY OF PARTICIPANTS JUDGED WOULD BE PRUDENT TO BEGIN SLOWING PACE OF BALANCE SHEET RUNOFF "FAIRLY SOON".
🔴 FED MINUTES: THE VAST MAJORITY OF PARTICIPANTS JUDGED WOULD BE PRUDENT TO BEGIN SLOWING PACE OF BALANCE SHEET RUNOFF FAIRLY SOON.
🔴 FED MINUTES: A FEW PARTICIPANTS PREFERRED TO CONTINUE CURRENT PACE OF RUNOFF UNTIL INDICATORS SHOWED RESERVES WERE NEARING AMPLE LEVEL.
🔴 FED MINUTES: SOME PARTICIPANTS NOTED CONCERN THAT FINANCIAL CONDITIONS MIGHT NOT BE AS RESTRICTIVE AS DESIRED, WHICH COULD PUT UPWARD PRESSURE ON INFLATION.
🔴 FED MINUTES: PARTICIPANTS GENERALLY NOTED RECENT DATA HAD NOT INCREASED CONFIDENCE THAT INFLATION WAS MOVING SUSTAINABLY DOWN TO 2%.
🔴 FED MINUTES: PARTICIPANTS GENERALLY NOTED RECENT DATA HAD NOT "INCREASED CONFIDENCE" THAT INFLATION WAS MOVING SUSTAINABLY DOWN TO 2%.
🔴 FED MINUTES: PARTICIPANTS NOTED THAT THE DISINFLATION PROCESS WAS CONTINUING ON A PATH GENERALLY EXPECTED TO BE SOMEWHAT UNEVEN.
🔴 FED MINUTES: PARTICIPANTS GENERALLY JUDGED RISKS TO ACHIEVING EMPLOYMENT AND INFLATION GOALS WERE MOVING INTO BETTER BALANCE.
🔴 FED: MINUTES: ALMOST ALL PARTICIPANTS AT FED'S MARCH 19TH-20TH MEETING JUDGED IT WOULD BE APPROPRIATE TO PIVOT TO LESS RESTRICTIVE POLICY STANCE AT SOME POINT THIS YEAR.
🔴 FED MINUTES: PARTICIPANTS GENERALLY NOTED UNCERTAINTY ABOUT PERSISTENCE OF HIGH INFLATION.
*FED MINUTES: ALMOST ALL SAW IT APPROPRIATE TO CUT THIS YEAR especially Joe Biden *FED FAVORS REDUCING MONTHLY ASSET RUNOFF PACE BY ROUGHLY HALF https://t.co/4yQ9d7oWeE
🔴 FED MINUTES: PARTICIPANTS SAW LITTLE NEED TO SLOW MORTGAGE-BACKED SECURITIES RUNOFF, PREFERRING TO ADJUST CAP ON TREASURIES REDEMPTIONS.
*FED FAVORS REDUCING MONTHLY ASSET RUNOFF PACE BY ROUGHLY HALF *FED MINUTES: ALMOST ALL SAW IT APPROPRIATE TO CUT THIS YEAR *FED PREFERS TO ADJUST TREASURY CAP TO SLOW RUNOFF, NOT MBS
*FED MINUTES SHOW UNCERTAINTY ON PERSISTENCE OF HIGH INFLATION Not any more
❖ Wednesday Data Calendar: CPI, March FOMC Minutes, Fed Speak https://t.co/TKtv1z8ys4
Key Events This Week: 1. March CPI Inflation data - Wednesday 2. Fed Meeting Minutes - Wednesday 3. March PPI Inflation data - Thursday 4. Initial Jobless Claims data - Thursday 5. MI Consumer Sentiment data - Friday 6. Total of 8 Fed speaker events this week Will…