USD: FOMC Minutes: Balance Sheet Runoff Likely To Formally Announced Next Month – CIBC

CIBC Research comments on today's FOMC minutes from the July meeting.

Despite the recent run of soft inflation readings, FOMC members appear comfortable moving forward with further tightening. The minutes of the July meeting indicate that many participants still view the recent weakness in consumer prices as transitory, and that most expect inflation to rebound in the coming years.

..As a result, barring some unforeseen events, we expect the balance sheet run-off to be formally announced next month.

Furthermore, given the still limited concerns surrounding the undershoot of inflation, a few months of healthy price increases over the back half of this year will keep a December rate hike alive.

Source: CIBC Economics – CIBC Capital MarketsOriginal Article