FOMC Minutes in the limelight today – Deutsche Bank

Deutsche Bank analysts suggest that we’ve got the FOMC minutes from the July meeting out tonight and will be a key economic event for today.

Key Quotes

“It’s worth noting that there will be an element of staleness to these now given the tariff developments since then however our economists made the point that they may provide an important benchmark for Fed officials’ outlooks prior to the escalation of trade tensions. They note for example, if the minutes indicate officials’ existing economic views were largely predicated on a flare-up in trade tensions, as St. Louis Fed President Bullard (dove/voter) mentioned last week, this would be relatively hawkish as it would imply officials think they do not need to do much more easing than they have already foreshadowed. However, if trade tensions returning to a boil a day after the July meeting was actually a surprise, which would be implied by Powell saying they had "returned to a simmer" in his prepared remarks to open the press conference, this would be consistent with our economists’ call that more monetary policy easing than was built into the June dot plot is to be expected.”