US: FOMC minutes in focus - TDS

The minutes to the July FOMC will take prevalence over economic data and are likely to provide further evidence that the Fed is ready to announce balance sheet reduction at the September meeting, explains the analysis team at TDS.

Key Quotes

“With this widely expected by markets, we think the risks are tilted towards a dovish surprise should the Fed show any signs of wavering on its inflation outlook. Turning to the data, the market expects July housing starts to post an incremental 0.4% m/m increase to an annualized 1220k. Building permits are expected to post a mild pullback after a 9.2% advance last month; the market consensus is for permit issuance to slip 2.0% m/m to an annualized 1250k.”