Attention has now shifted to the FOMC’s June Monetary Policy Meeting Minutes, due for release on Wednesday.
Traders will be closely monitoring whether the hawkish comments made by some of the Fed officials during the last few weeks match up with the notes from the June Meeting Minutes or completely contradict them.
There is the potential for the Fed’s June meeting minutes to surprise the market, similar to the way April minutes did. Right after the April FOMC meeting, Jerome Powell said policy makers “were not talking about talking about tapering”. But the minutes revealed a divided committee, with a number of participants signalling it would be appropriate to begin discussing interest rates hikes and tapering of its quantitative easing program at upcoming meetings if the economy continues to make rapid progress.
Right now, there is a lot we don’t know about the Fed’s thinking around tapering, so any new information will likely open the door for fresh volatility ahead.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
For a look at all of today’s economic events, check out our economic calendar.