In examining the latest indications regarding the Federal Reserve's (Fed) monetary policy, the market focused on the statement made by Cleveland Fed President Loretta Mester and governor Michelle Bowman who attended the "Policy Panel Discussion" at the central bank of Japan (BOJ) today.
According to Bowman, he believes it is important to reduce the size of the balance sheet as soon as possible while the economy is still strong.
Meanwhile, Fed Mester prefers the FOMC's statement to more carefully evaluate the current level of the economy that can affect future projections.
He hopes the Fed will present clearer policy projections and economic metrics so that market players can evaluate policy projections.
The next focus will be on Minneapolis Fed Neel Kashkari who will speak as a panelist at the Barclays-CEPR International Monetary Policy Forum at the beginning of the New York session.
Next, governor Lisa Cook and the San Francisco Fed Mary Daly will give their views in a discussion at a separate event.
There is still no indication from Fed members on interest rate cuts with the market placing 50% expectations for interest rates to remain on hold in September.
The focus on economic data as the next indicator is on the PCE price index data which measures the personal spending of consumers in the United States (US) as one of the inflation component indicators for the Fed.
