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The FOMC releases its minutes on Wednesday. What can we expect from the minutes?

Here is their view, courtesy of eFXdata:

Barclays Research discusses its expectations for this week’s FOMC minutes (Wed) from the December policy meeting.

We expect the minutes to emphasize risks to the outlook  from the uncertain trajectory of the virus, the limitations of monetary policy (and the leading role of fiscal policy) in addressing fallout from the pandemic, and the committee’s ongoing willingness to strengthen policy supports, including credit market supports through its special authorities, should the need arise,” Barclays notes.

“With monetary policy not in a good position to counteract weakening data from an intensifying pandemic,  we expect the minutes to show that members preferred to adjust rate guidance on asset purchases while leaving the pace and composition of purchases unchanged,” Barclays adds.

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