Japan Week Ahead: BOJ Policymakers Set for More Rate Hikes While Prime Minister Takaichi in Rough Seas Seeking Temporary Sales Tax Cut on Food
–September Trade Data to Show Resilient Exports, Consumer Inflation Seen Rising Above BOJ’s 2% Target By Max Sato (MaceNews) – The Bank of Japan is on course toward lifting the short-term interest rate further to ensure it is clearly in a neutral zone – its original aim under the normalization process launched three years ago […]
Warsh Reaffirms ‘Will Deliver Price Stability;’ Cagey On Fed’s Next Move
– Won’t Prejudge Outcome Of Late October FOMC Meeting – ‘Discouraging’ Inflation Reports Change Some Attitudes Toward Tightening By Steven K. Beckner (MaceNews) – Federal Reserve Chairman Kevin Warsh reaffirmed the Fed’s commitment to “deliver price stability” late Thursday in Bangkok, but refused to give any guidance as to what further actions he and his […]
Japan Week Ahead: BOJ Policymakers to Digest More Q3 Data Before Their Oct. 29-30 Meeting; Board Widely Expected to Hold Rates Steady Until December or January
–September Producer Inflation Forecast to Remain Elevated Above 7%, August Machinery Orders Expected to Rebound amid Solid Capex Demand By Max Sato (MaceNews) – Ahead of their Oct. 29-30 meeting, Bank of Japan policymakers will get to see more data for the third quarter that is set to show resilient exports and elevated costs for […]
Fed Officials Moving Toward Higher Interest Rates but Not Necessarily Soon
– Waller: FOMC Has ‘Flexibility’; No Need To Hike at Consecutive Meetings – Musalem: Rates Need to Go Higher to Curb Inflation ‘In Timely Manner’ By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to lean decidedly toward further tightening of U.S. monetary policy but have given themselves leeway as to […]
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 […]