US: Focus on FOMC minutes with political risks still being rife - ING

The July FOMC minutes today will likely shed light on the committee’s concerns over slowing US inflation and whether there is any appetite for pressing ahead with a third 2017 rate hike later this year, according to Viraj Patel, Analyst at ING.

Key Quotes

“The strong retail sales report yesterday may have offered Fed officials some comfort when it comes to prospects of a 2H rebound in US growth, though the jury is still out as to whether this is sufficient enough for the FOMC to rest on their inflation laurels. With political uncertainty in the US rife, as events over the past week have shown, there’s a risk that the Fed opts to play it cool. Debt limit impasse risks may also delay balance sheet plans.”