The knee-jerk was lower in the dollar but there’s plenty of here for the dollar bulls. The balance sheet talk was generally in-line with what markets were thinking but the ‘many’ comment on 50 bps emphasizes the hawkish pressure the Fed is feeling.
When Biden announced the 180 million barrel US SPR release, he said other countries would add 30-50 million barrels. This report says the release will be 120 million barrels but that includes 60m of the 120m US barrels. So we’re talking about 60 million, which is more than Biden said but I’d be careful with this one until the details are clearer. Those other barrels might be double-counted as well.
This is from a Reuters report, citing two sources.
WTI has stabilized near $101.50 after falling on the US inventory report.
Federal Reserve Bank of Philadelphia President Patrick Harker to speak virtually on the economic outlook before the Delaware State Chamber of Commerce.
2pm US ET (1800 GMT)
The Federal Open Market Committee minutes from its March 15- 16 policy meeting
After Brainard on Tuesday let’s see if there are any further hawkish surpises. Eyes will be on the lookout for information on the timing and sizing of balance sheet reduction. Balance sheet run-off looks likely to be faster than last time.
US Treasury Secretary Janet Yellen is set to a speech on cryptocurrency policy and regulation.
Thursday 10:30 a.m. ET (1430 GMT)
will outline possible steps the Treasury could take to investigate the use and technology of digital assets
US Treasury statement:
“Secretary Yellen will make the case for a consistent and comprehensive policy framework that promotes responsible innovation of digital assets and appropriately assesses and mitigates the risks they may pose”