Fed Balance Sheet Update
In her March press conference, when Chair Yellen said nothing has been decided with regard to the balance sheet, it turns out she meant nothing final had been decided. The March FOMC minutes laid out several scenarios for ending balance sheet reinvestment and clarified a few significant points. From the minutes, we know balance sheet normalization is likely to start toward the end of this year.
Trump Spiking Punch While Fed Adds Juice
According to the March FOMC minutes, the discussion surrounding the recent rise in equity prices featured prominently in the meeting. The rise in global equity prices was the first thing mentioned in the minutes and was followed later by a discussion of its implications. The rise in valuations appears to be one reason the Fed accelerated from an annual tightening pace to a quarterly tightening pace.