US: FOMC Minutes and Non-manufacturing ISM to be the highlights – BMO CM

Sal Guatieri, Senior Economist at BMO Capital Markets, points out that Non-manufacturing ISM and FOMC Minutes from  March 14-15 meeting will be the highlights of today’s US session.

Key Quotes

“Like its factory cousin, the nonmanufacturing index has turned higher in response to a recovering oil patch and rising construction. It, too, could retrace modestly in March, after the business activity index hit six-year highs last month. Still, the ISM indexes suggest the economy is healthier in Q1 than the official GDP figures are likely to show on April 28 (1.8% a.r.), and its underlying strength is expected to support a decent rebound in Q2 (2.7%).”

“The minutes will be eyed for indications that the Fed is planning to increase the pace of tightening. While the median policy maker looks for two additional rate hikes this year, several members are pushing for more. The FOMC expressed greater confidence in the economic outlook in March, but the meeting also produced one dissenting vote against the rate hike (Kashkari).”