Expect two notable changes from July FOMC statement - Credit Agricole

The FOMC decision is Wednesday

Credit Agricole CIB FX Strategy Research notes that the FOMC meeting on Wednesday will not be accompanied by the new projections and a press conference but there could be some notable changes to the statement.

"First, the statement may further emphasize that inflation developments are being monitored closely given the recent disappointing readings and hints of doubt in the Chair's testimony last week. Second, the statement should also start to point to balance sheet reduction plans being announced in September, possibly repeating the "relatively soon" reference," CACIB adds.

"As such the two innovations should be somewhat mutually offsetting in terms of their USD impact," CACAIB argues.

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