Overview: Fri, February 23

Daily Agenda

Time Indicator/Event Comment
10:15Dudley and Rosengren

On Fed balance sheet panel

11:00Monetary policy report

Fed releases semi-annual monetary policy report

13:30Mester (FOMC voter)

On panel with ECB's Coeure in NY

15:00Treasury investor class auction dataMid-February data
15:40Williams (FOMC voter)On outlook for US economy

US Economy

  • Economic Indicator Preview for Friday, February 23, 2018

    There are no major indicators scheduled for release today.  The economic data calendar will pick up a little steam after the weekend.  Highlights for next week include consumer confidence on Tuesday, the latest revision to Q4 GDP on Wednesday, as well as the PCE and construction reports on Thursday.

This Week's MMO

  • MMO for February 19, 2018

    The Fed has a full analytical agenda ahead of it this year.  There are longstanding questions about its communications strategy to consider, and a number of FOMC members are in favor of a fundamental rethink of the Fed’s flexible inflation targeting framework.  This week’s MMO focuses on a narrower technical issue.  We think the optimal long-run size of the Fed’s balance sheet is much larger than generally assumed in baseline simulations.  We see no reason for the Fed to push bank reserves below $1.5 trillion, which is a level that is likely to be reached within the next year.  It is not too early for the FOMC to begin to focus on the question of what the stopping point for balance sheet normalization should be.

MMO Analysis