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20 May 2015
FOMC Meeting: Expect the minutes to have a high noise to signal ratio – BBH
FXStreet (Barcelona) - Previewing the FOMC Meeting Minutes to be released ahead, the Brown Brothers Harriman Team warn that the signal generated by the Fed members would be diluted in the minutes and the exact context of discussions won’t be discussed.
Key Quotes
“During the North American session, the highlight will be FOMC minutes. Investors will be looking for color on the Fed's assessment of the economic headwinds, and perhaps some discussion on the criteria used to decide when to raise rates.”
“That said, we again caution that the FOMC minutes have a high noise to signal ratio. The signal generated by the Fed's leadership is diluted in the minutes, where voting and non-voting members voice opinions and the context of discussions/remarks is often not disclosed.”
“The Fed’s Evans spoke earlier today in Munich. He repeated his view that rates shouldn’t be raised until early 2016, but added that he could be convinced to raise rates earlier.”
Key Quotes
“During the North American session, the highlight will be FOMC minutes. Investors will be looking for color on the Fed's assessment of the economic headwinds, and perhaps some discussion on the criteria used to decide when to raise rates.”
“That said, we again caution that the FOMC minutes have a high noise to signal ratio. The signal generated by the Fed's leadership is diluted in the minutes, where voting and non-voting members voice opinions and the context of discussions/remarks is often not disclosed.”
“The Fed’s Evans spoke earlier today in Munich. He repeated his view that rates shouldn’t be raised until early 2016, but added that he could be convinced to raise rates earlier.”