Despite the direction of the US Dollar being driven overwhelmingly by US-China trade talk headlines at the moment, a plethora of insight found in the most recent FOMC minutes details the Federal Reserve’s current monetary policy stance and outlook. On that note, the FOMC minutes noted how some central bankers see improvement in spending across interest rate sensitive industries. Although, the Federal Reserve seems to have left the door open for a potential shift back to an accommodative stance if there is a material reassessment to US economic outlook. Likewise, some Fed members favored a slower pace of injecting cash into the financial system via T-bill purchases.
Growing at its current pace, the Fed balance sheet is expected to top $4.2 trillion by the end of 2019. Nevertheless, Fed Chair Powell adamantly claims that repo market operations should not be confused with quantitative easing . — Written by Rich Dvorak , Junior Analyst for DailyFX.com Connect with @RichDvorakFX on Twitter for real-time market insight DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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