As it prepares to announce a partial shrinkage of its balance sheet this week, the question is how firmly the Fed signals the next rate hike.The Fed is widely expected to announce a partial shrinkage of its balance sheet at its 20 September meeting, in line with the guidance it provided in June.We also expect Yellen to point to the possibility of another rate hike soon (while remaining vague about the exact timing), dependent on further improvements in inflation. This should be backed by the...
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