Key Takeaways:

  • This Tuesday and Wednesday the Fed’s FOMC meets on interest rates
  • Wednesday at 2:00 Chair Powell meets press and will discuss rate decision and direction
  • New Fed Members and role in rate policy
  • Schumer and Manchin continue Budget Reconciliation talks
  • Press will focus on guns and Jan. 6 hearings

FOMC and interest rate hike

This week the Fed’s Federal Open Markets Committee (FOMC) meets and there  is a general anticipation that they will increase rates by 50bps.  One of the interesting aspects of FOMC meetings is that three weeks after the decisions are announced the minutes of the meeting are released.  This means that when Chair Powell addresses the press Wednesday afternoon, at the conclusion of the FOMC meeting, he knows that what the other members of the Committee said will all become public knowledge and that has got to impact how he answers questions of future policy decisions.

One thing I will be watching will be for any indication that the two new Governors, appointed by President Biden, will have any impact on the decisions.  This will be the first meeting where Biden Fed appointees Lisa Cook and Phillip Jefferson will be participating. When the minutes are released on July 6 we will see if they showed any cards on where th...

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