US: All eyes on FOMC minutes – TDS

June FOMC minutes will be released at 14:00 ET and provide an account of the Fed’s discussion around normalizing policy using a mix of rate hikes and unwinding of the balance sheet, explains the analysis team at TDS.

Key Quotes

“In particular, we will be attune to any details on when the new reinvestment policy could be implemented. We will also look to the discussion around the inflation outlook but caution that any consensus that disinflation is transitory could be discounted by markets, given their reluctance to price in rate hikes over the next twelve months.”

“Factory orders for May are also on the schedule and the market consensus look for a -0.5% m/m print, which would imply an offset to the 1.1% decline in durable goods orders from nondurables.”