Category: Central Banks

Bank of Canada Keeps Policy Rate at 2.75%, to ‘Proceed Cautiously’ While Watching Both Upside, Downside Inflation Risks from Trade War

–Governor Macklem: To Remain Less Forward-Looking Than Usual ‘Until Situation Is Clearer’–Mackem: Prepared to Act ‘Decisively’ If Information Points Clearly in One Direction–Macklem: Governing Council Discussed Both Holding Rates Steady and Cutting by 25 Basis Points as in March–Senior Deputy Governor Rogers: Some Are More Optimist about Trade Rows Being Resolved but There Is ‘Clear […]

Fed’s Powell: Economy, Labor Market ‘Still Solid’ But Outlook ‘Highly Uncertain’

– Tariffs May Boost Both Inflation, Unemployment; Give Fed ‘Difficult’ Choices – FOMC May Have to Make ‘Difficult Judgment’ in Balancing Inflation, Job Goals – Fed Chief Refrains from Saying FOMC Is In ‘No Hurry’ By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell said Wednesday the economy and labor market remain “solid” […]

Fed Officials Keeping Monetary Policy Sidelined in Face of Tariff War

– Barkin: Economy ‘In Very Dense Fog’; Fed Must Handle With ‘Judgment’ – Kashkari: Bar for Rate Cuts Has Risen Due to Inflation Concerns – Musalem: Bar for Cutting Rates Higher As Both Inflation, Recession Risks Up – Daly: Fed Must ‘Tread Slowly and Tread Carefully” By Steven K. Beckner (MaceNews) – Federal Reserve officials […]

Fed’s Powell: FOMC Must Wait For Greater ‘Clarity’ Before Changing Policy

– Uncertainty High Amid Trump Policy Changes, But Economy Still ‘In A Good Place’ – Fed Doesn’t Need To Be ‘In A Hurry’ to Lower Rates  By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell said Friday the Fed has to wait for more “clarity” on the economic effects of the Trump administration’s […]

Preview: BOJ March Quarter Tankan to Show Business Sentiment Slightly Down or Flat amid Uncertainty over Trump Tariffs, Elevated Consumer Inflation

By Max Sato (MaceNews) – The Bank of Japan’s quarterly Tankan business survey is forecast to show confidence among manufacturers slipped in the March quarter in the face of stiff tariffs on U.S. imports of metals and vehicles as well as President Trump’s plans to slap “reciprocal tariffs” on imports from global trading partners. China’s […]

StL Fed’s Musalem: Must Lean Against Inflation If Expectations Become Unanchored

– May Have To Leave Rates Unchanged Longer Or Hike Rates If Inflation Worsens By Steven K. Beckner (MaceNews) – Although downside risks to the labor market have increased, so have upside risks to inflation and inflation expectations, and such a combination could create a difficult monetary policy dilemma, St. Louis Federal Reserve Bank President […]

FOMC Holds Funds Rate Steady, Participants Project 50bp of 2025 Rate Cuts

– Powell: ‘Not in Any Hurry to Move,’ ‘Well Positioned to Wait For Clarity’ – SEP Retains December Dots While Forecasting More Inflation, Less GDP Growth – Powell: Slower Pace of Balance Sheet Run-Off Has No Monetary Policy Import By Steven K. Beckner (MaceNews) – Faced with softer economic activity and uncertainty about the outlook […]