FOMC minutes preview – Barclays

In the view of analysts at Barclays, the FOMC minutes is likely to provide fresh hints on the timing of the Fed balance sheet normalization process, while could express concerns over the US inflation outlook.

Key Quotes:

“We expect the minutes of the July FOMC meeting to provide further information regarding the timing of balance sheet normalization and the degree of consensus within the committee.

We think balance sheet normalization will likely start in September and the hurdle is quite high for the FOMC to deviate from what it has been signaling so far.

We will also look for more detail on how concerned the FOMC is with the incoming data on inflation.

Although we think concern has risen, we do not believe there is sufficient worry yet to derail a likely December rate hike.”