Most Federal Reserve policymakers reckon that as long as economic data remains firm, the US Central Bank should initiate steps to trim its $4.50 trillion balance sheet of assets this year. The minutes of the March 14-15 policy meeting, released late Wednesday, showed that committee voting members also had a broad-based discussion on whether to phase out reinvestment and rolling over of existing securities all at once.
After hiking the benchmark interest rate to a target range of between 0.75% and 1.00% in March, the Fed signalled that it remains on track to lift rates at least twice more this year. While the dollar was initially higher as financial markets digested plans to tighten monetary policy even further, the US currency has since found itself back on the retreat. Meanwhile S&P 500 futures are perched below 2350 ahead of payroll data due tomorrow.