Bank of America Merrill Lynch Outlook on FOMC
“The FOMC is likely to tweak the statement to strengthen the commitment to balance sheet normalization but express greater concern about low inflation. Specifically, we expect the FOMC to note the Committee expects to begin implementing a balance sheet normalization program “soon”. This would send a message that the FOMC is on track to announce the start of normalization at the September meeting. We also expect the FOMC to emphasize the recent subdued inflation.
The outcome of these potential language changes would signal the FOMC is more cautious regarding the path of future rate hikes, but still committed to shrinking the balance sheet, in our view,”