US DATA: Apr 26-27 FOMC Minutes show active discussion of exit
strategy, with “a range of views” but agreed this “did not mean that the
move toward such normalization would necessarily begin soon.” Some said
need to be prepared to tighten later; a few wanted action later this yr;
FOMC agreed no action in the end. Most preferred once asset sales are
appropriate, “such sales should be put on a largely predetermined and
preannounced path; however, many of those participants noted that the
pace of sales could nonetheless be adjusted in response to material
changes in the economic outlook. Several other participants preferred
instead that the pace of sales be a key policy tool and be varied
actively in response to changes in the outlook. A majority of
participants preferred that sales of agency securities come after the
first increase” in FF target. Many wanted to return SOMA to all Tsys
“perhaps over 5 yrs.” More gradual asset sales might allow an earlier FF
rate hike. Most prefer returning to FF target, talked about a corridor
target system of IOER low/DR top.