Bank of Canada Pauses for 2nd Straight Meeting amid Trade War Uncertainty; Focused More on Firmer-Than-Expected Core Inflation, Sturdier GDP Growth
–BOC Keeps Policy Rate at 2.75% After 7 Rate Cuts Totaling 225 Basis Points from June 2024 Until March 2025–Governor Macklem: Only Forward Guidance Is: ‘Proceeding Carefully,’ Less Forward-Looking Than Usual–Mackem: CAD Weakness Lifted Import Costs but Recent Rebound to 72-73 Cents Vs. USD Should Reverse It By Max Sato (MaceNews) – The Bank of […]
Preview: Bank of Canada Seen Keeping Policy Rate at Nearly Neutral 2.75%, Staying Cautious Until Trade War Fog Clears Up
By Max Sato (MaceNews) – The Bank of Canada on Wednesday is largely expected to maintain its policy interest rate – the target for overnight lending rates – at a nearly neutral level of 2.75%, pausing for the second straight meeting until bank officials can figure out exactly how trade conflicts are hurting growth and […]
Fed Officials Still Pursuing Monetary Policy ‘Patience’ in Face of Trade Uncertainty
– Some Talk of Eventual Rate Cuts; Others More Reticent By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to express caution about changing monetary policy from the “moderately restrictive” stance it has been in since the Fed completed 100 basis points worth of short-term interest rate cuts in December. President […]
Fed Officials Still Hopeful About Economy, In No Rush to Cut Interest Rates
– Divergent Views Have Emerged But for Now Officials United on Need For Patience By Steven K. Beckner (MaceNews) – As the Federal Reserve approached its mid-year monetary policy meeting, Fed officials have given few signs this week that they are prepared to change their “moderately restrictive” interest rate settings any time soon. While officials […]
Fed Officials Continue to Push Off Rate Cuts As They Await ‘Clarity’
– Musalem, Others See No Rush to Change Monetary Policy By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to speak in a patient, cautious vein, strongly suggesting they see no need to rush to ease monetary policy in a climate of heightened uncertainty. Fed officials have largely echoed Fed Chair […]
FOMC Holds Funds Rate Steady as Powell Sees ‘No Hurry’ To Ease Policy
– Sees Risks Up for Both Higher Unemployment And Higher Inflation – Powell Says FOMC May Have to Make Tough Policy Choice but No Need Now By Steven K. Beckner (MaceNews) – Facing heightened uncertainty about how the Trump administration’s trade and other policies will affect the economy, Federal Reserve policymakers once again marked time […]
TRANSCRIPT: Fed’s Powell Says Wait and See Effects of Tariffs on Inflation, Unemployment
WASHINGTON (MaceNews) – Federal Reserve Chair Jerome Powell Wednesday said in several different ways the Fed has to wait and see whatever effects on inflation and unemployment come from whatever the ultimate tariff rates are imposed on China and other countries – and beyond that, he said very little more. A transcript of the post-FOMC […]
FOMC Stands Pat, Sees Risks Up for Both Unemployment, Inflation
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday, as expected, decided to maintain its policy rate and the only notable addition to the policy statement was that the Fed sees “the risks of higher unemployment and higher inflation have risen.” The policy statement follows: Although swings in net exports have affected the data, recent […]
Japan Finance Minister Kato: Didn’t Discuss FX Levels, Framework with US Counterpart Treasury Sec Bessent
–BOJ Governor Ueda: To Hike Interest Rates Gradually If Outlook for 2% inflation Sets in By Max Sato (MaceNews) – Japanese Finance Minister Katsunobu Kato told a news conference on Thursday in Washington that he and his U.S. counterpart didn’t discuss guiding the currency market toward a weaker dollar against yen to help trim the […]
FED’S BEIGE BOOK: Analysts See ‘Pre-Downturn’ Assessment of Tepid Economy Coast to Coast
WASHINGTON (MaceNews) – The Federal Reserve’s latest “Beige Book” survey Wednesday of economic conditions in all 12 Fed Districts reflected widespread uncertainty because of shifting trade policy, softening consumer spending and worsening outlooks that hinted at an economy on the precipice of a downturn. The following is the national summary and District-by-District snapshots from the […]