UPDATE – Fed Officials Stay Focused On ‘Too High’ Inflation Despite Encouraging PCE Data
– Jefferson: Inflation Risk To Upside; Worried People Will Stop Believing Fed 2% Goal – Collins: Some ‘Promising’ Inflation Signs; Others Less Promising; Still Upside Risks – Kashkari Downplays PCE Report As Just “A Snapshot’; Foresees More Rate Hikes – Cook: Inflation ‘Too High For Too Long’; Labor Market Can Handle Tightening By Steven K. […]
NABE Survey Shows Shift to Expectations of Fed Tightening Among Business Economists
By Steven K. Beckner (MaceNews) – The mood of business economists has shifted dramatically, swinging from hope for monetary easing to expectations of more monetary tightening, according to a survey by the National Association for Business Economics released Monday. The NABE’s semi-annual survey of its 151 members shows a substantial proportion of them considering both […]
Japan Week Ahead: Tokyo CPI Data Expected to See Signs of Growing Upside Risks to Inflation, AI Projects Boon for Factory Output but Damper for Consumers
–BOJ Tankan Survey to Show AI Boom Lifting Manufacturer Sentiment, High Costs Making Services Sector Slightly Less Confident By Max Sato (MaceNews) – Behind the Bank of Japan’s accelerated pace of interest rate increases this month were creeping upside risks to inflation as the lingering Iran war and the stubbornly weak yen threaten to keep […]
Fed Officials Forewarn More ‘Pain’ For the Economy After Initial Rate Hike
– Goolsbee: Getting Inflation Down to 2% Target ‘Won’t Be Painless’ – Barkin: Inflation ‘Troublemaker’ Will Need More Than One ‘Talking-To’ – Paulson: ‘Recalibration’ Brought FFR ‘Closer’ But More Hikes Likely Needed – Williams: ‘Reasonable’ To Expect More Fed Tightening – Collins: Upside Inflation Risks Worsening; Need ‘More Restrictive’ Stance By Steven K. Beckner (MaceNews) […]
Japan Week Ahead: Forex Trading in Holiday Week Seen Choppy, Cautious amid Signs MOF Ready to Intervene to Prop Up Yen After BOJ Rate Hike Did Little to Help
–Data Calendar Thin Until Sept. 28 Week When BOJ’s Tankan Survey Set to Show Manufacturer Sentiment Improved Sharply in Q3 on Global AI Boom By Max Sato (MaceNews) – The coming week is quieter on the economic policy and data fronts after the Bank of Japan followed up on its June rate hike on Friday […]
Bank of Japan Hikes Policy Interest Rate to 1.25% from 1% in 7 to 2 Vote, Repeats It Will Continue to Raise Rate as Part of Normalization
By Max Sato –BOJ Points to Upside Risks to its Inflation Outlook, Notes Financial Conditions Expected to Remain Supportive to Economic Activity (MaceNews) – The Bank of Japan’s nine-member board on Friday decided to raise the target for the overnight interest rate to 1.25% from 1% in a 7 to 2 vote, warning that elevated […]
FOMC Hikes Funds Rate 25 BP For First Time In 3 Years To 3.75-4.0% Range
– Warsh: Strong Economy, High Inflation Made FOMC ‘Remove Dose of Accommodation’ – Warsh: Rate Hike Should Ensure ‘Timelier Return’ to Fed’s 2% Inflation Target – Warsh Refuses to ‘Prejudge’ Future FOMC Actions; No ‘Forward Guidance’ – FOMC Participants Project Funds Rate At 4.1% end ‘26; 4.1% end ‘27; 3.9% End ‘28 – PCE Inflation […]
FOMC: Raises Fed Funds Rate By Quarter Point As Expected; Dots Suggest One More Rate Hike
WASHINGTON (MaceNews) – The following is the extremely brief policy statement by the Federal Open Market Committee Wednesday afternoon: The Federal Open Market Committee approved the following statement for release by a 12 – 0 vote: The Committee decided to raise the target range for the federal funds rate by 1/4 percentage pointto 3-3/4to 4 […]
Japan Week Ahead: BOJ Set to Raise Policy Rate to 1.25% from 1% at Sept. 17-18 Meeting, Markets Eye Another Hike in December or January
–August Exports to Continue Showing Resilience, July Machinery Orders to Dip After Sharp Rebound, August CPI Seen Steady to Slightly Up around BOJ’s 2% Target By Max Sato (MaceNews) – Official comments and economic data suggest that it is both necessary and safe to accelerate the pace of the Bank of Japan’s normalization rate hikes, […]
Japan Week Ahead: BOJ Governor Ueda Repeats Board Will Have Serious Debate on Need for Follow-Up Rate Hike This Month
–Q2 GDP to Be Revised Up Slightly, August Producer Inflation to Show Elevated Costs By Max Sato (MaceNews) – About two weeks before the Bank of Japan’s next policy meeting on Sept. 17-18, Governor Kazuo Ueda sent out a cautious but suggestive message to the markets that he and his colleagues will have a serious […]