RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
The US Federal Reserve is likely to take a decision on how to reduce the balance sheet accommodation in 2017. Minneapolis Fed President Neel Kashkari who was the only dissenter at the March FOMC meeting said that he wants to look at the Fed’s plan in reducing its $4.5 trillion balance sheet as soon as possible. He added that there are no reasons to hold such a huge balance sheet and there are plenty of plans to choose from on how the reductions could be done. Cleveland Fed President Loretta Mester said that she favors reducing the balance sheet beginning as early as this year.
Speaking to the Reuters in an interview, San-Francisco Fed President John Williams said that he would want to let the Fed’s $4.5 trillion balance sheet start shrinking later in the year. We at FxWirePro originally expected and forecasted a decision on balance sheet last year but it looks like that our balance sheet forecast is going to come true for 2017. As the voice to reduce balance sheet grows within the Fed, we expect the central bank to reveal its plans by the end of the year.
We expect the fed to initially adapt a stop reinvestment plan rather than sell assets plan as the inflation is not overbearingly concerning.
