FOMC minutes to provide information on concerns regarding trade policy – Nomura

Analysts at Nomura point out that the changes to the August FOMC statement language were very minimal, mainly reflecting incoming data.

Key Quotes         

“We expect the minutes to provide additional information on participants’ concerns regarding US trade policy and the possible downside risk from increased tariffs and softening business sentiment.”

“In addition, as the Committee expects to raise rates two more times this year, in September and December, bringing the policy rate closer to the median longer-run estimate of 2.88%, conversations in the minutes regarding the neutral rate and whether policy will need to move into a restrictive stance will be important.”