Capital Economics on the Federal Open Market Committee January minutes released Wednesday
In brief …
On rates:
- Hurdle for another Fed rate hike seems to be quite high
- Cap Eco expect rates on hold through 2019
- Then cuts in 2020 (total of 75 basis points of cuts through 2020) due to a deterioration in economic growth
On the balance sheet:
- Says the minutes provided more clarity on b/s
- Show an increasing possibility the Fed will halt b/s run-down during H2 of 2019
- will end up basing around $3.5tln
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Earlier: