Fed stayed the course in July – SocGen

Omair Sharif, Research Analyst at Societe Generale, notes that the Fed stayed the course in July and made no major changes at its meeting and in fact, the changes to the statement were very much in line with expectations.

Key Quotes

“The statement strongly hinted that balance sheet normalization would be announced in September, but markets largely expected a September announcement anyway. Meanwhile, the changes to the economic assessment were minimal. The inflation language was altered slightly and tilted towards being somewhat more dovish, but the Fed continues to expect that inflation will move towards 2% in the medium term.”