Preview: BOJ June Tankan Sentiment Mixed; Manufacturers Down, Services Up
–Covid Lockdowns in China, High Producer Costs Weigh on Factory Operators –Services Seen Upbeat on Japan’s Eased Covid Rules, Summer Spending Hopes –Business Confidence Projected to Improve in September Amid Uncertainty –Firms, Large and Small, Expected to Revise Up Their Combined FY22 Capex Plans By Max Sato (MaceNews) – The Bank of Japan’s quarterly Tankan […]
<strong>Powell: Rates Must Rise To “Restrictive” Levels to Curb Demand, Inflation</strong>
– Still Hopes For ‘Soft Landing’ but Achieving It ‘More Challenging’ By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell said Wednesday that he and his fellow monetary policy-makers must continue to raise short-term interest rates into “restrictive” territory to validate financial market expectations and successfully fight inflation. Powell, testifying on the Fed’s […]
Italy Backs ‘Gradual, Flexible’ Monetary Policy Normalization, Urges ECB to Avoid ‘Hawkish’ Message – Italian Government Sources
By Silvia Marchetti ROME (MaceNews) – Italy is warning against a sudden unwinding of Eurozone monetary policy accommodation and calling for a ‘gradual’ but ‘flexible’ normalization process, according to ruling coalition sources. “It is a very delicate moment for the European Central Bank, and it is paramount to avoid having to exit and then re-enter […]
BOJ Keeps Easing Stance to Support Economic Recovery as Inflation Stays Tame
By Max Sato (MaceNews) – The Bank of Japan said Friday it is maintaining its super-low interest rate targets along the nearly flat yield curve and large-scale asset purchase program to support economic recovery and lead inflation toward its stable 2% target from relatively low levels, staying as a lone wolf while other major central […]
<strong><br>FOMC Lifts Funds Rate 75 BPs; Signals More Rate Increases To Curb Inflation</strong>
– Powell Signals Rate Hikes in July and Beyond; 50 Most Likely In July – Dot Plot Projects Elevated Funds Rate Amid Worse Inflation, Slower GDP, More Jobless – Officials See Funds Rate at 3.4% End 2022; 3.8% End 2023; 3.4% End 2024 – ‘Neutral’ Rate Revised Up, But Only by A Tenth By Steven K. Beckner (MaceNews) – Federal […]
FOMC Headed for June, July 50 BP Rate Hikes; Then Rate Path Uncertain
–September Meeting Could Be Pivotal for Monetary Policy By Steven K. Beckner (MaceNews) – Judging from what Federal Reserve policymakers have been saying, a total of 100 basis points of additional short-term interest rate hikes is baked in the cake at the Fed’s upcoming Federal Open Market Committee meeting and the following one in late […]
Japan May Producer Inflation Eases on Slower Crude Oil Rise After Hitting 41-Year High in April
–BOJ’s Kuroda Committed to Easing Stance Despite Weak Yen, Seeing Slower Prices in FY23 By Max Sato (MaceNews) – Producer inflation in Japan eased in May to 9.1% on the year as crude oil and non-ferrous metal prices fell from the previous month, reflecting recent international markets, but April’s 9.8% spike, although downwardly revised from […]
UK Prime Minister Boris Johnson to Face Vote of Confidence Monday
–PM needs the support of 180 party lawmakers to remain in office By Laurie Laird LONDON (MaceNews) – Embattled UK Prime Minister Boris Johnson faces a snap vote of confidence in the UK parliament Monday evening, putting his controversial premiership at risk. The announcement came after at least 54 members – or 15% — of […]
FOMC Lifts Funds Rate By 50 Bp; More to Come but Path Remains In Doubt
– Powell Says 50 BP Hikes Will Be “On Table” Next Two FOMC Meetings – 75 BP Hike Not Under Consideration – Will Need to Be ‘Nimble’ Given Uncertain, Changing Outlook – Quick-paced Balance Sheet Reduction To Begin June 1 By Steven K. Beckner (MaceNews) – Federal Reserve policymakers not only continued raising short-term interest […]
FOMC Seems Sure to Go 50 Basis Points on May 4, but After That Rate Path Uncertain
By Steven K. Beckner (MaceNews) – It now seems all but guaranteed that the Federal Reserve will raise short-term interest rates for a second straight Federal Open Market Committee meeting in early May, but it is less certain what the Fed will do thereafter. With a 50 basis point hike in the federal funds rate on May 4 considered a foregone conclusion, the real […]