<strong>BOJ Keeps Easing Stance Amid Slowing Global Growth, Expects Cost-Push Inflation to Lose Steam in FY23</strong>
–Board Sees 3% Core CPI Rise in FY22 to Slow to 1.6% in FY23, 1.8% in FY24 –Board Revises Down GDP Forecasts to 1.9% in FY22, 1.7% in FY23, 1.1% in FY24 By Max Sato (MaceNews) – The Bank of Japan said Wednesday its policy board decided unanimously to maintain its basic monetary easing stance, […]
<strong>Bank of Canada Q4 Survey: Business Sentiment Dips for 4th Straight Quarter on Rising Interest Rates</strong>
–Firms Continue to See Inflation Above BOC’s 2% Target in Short Term –In 5 years, Firms Expect Inflation to be Within BOC’s 1-3% Target Range –Most Consumers Expect Mild to Moderate Recession within 12 Months –More Consumers Than Before Pandemic Anticipate Deflation in 5 Years as Supply Bottlenecks Ease By Max Sato (MaceNews) – Sentiment […]
<strong>FOMC Minutes Show Consensus on Tightening to Reduce Inflation</strong>
– But Need For ‘Risk Management,’ Avoiding Overtightening Cited – Officials Anxious to Avoid Perception of Less Anti-Inflation Commitment to By Steven K. Beckner (MaceNews) – At their final monetary policy meeting of 2022, Federal Reserve officials were together in their commitment to reducing inflation in the year ahead, but somewhat less united on how […]
FOMC Minutes Reflect Undimmed Dedication to Quenching Inflation Regardless of Slow Growth Consequences
WASHINGTON (MaceNews) – Federal Open Market Committee policymakers agreed on maintaining anti-inflation momentum with a continuing tolerance for any economic slowdown that may result this year without any premature easing. The Fed staff told the committee anticipated this year will see growth “slow markedly” and that GDP growth will be “subdued” through 2025. “No participants […]
Minneapolis Fed’s Kashkari: Pause Rate Hikes at 5.4%; Consider Cutting If Inflation Falls
By Steven K. Beckner (MaceNews) – Minneapolis Federal Reserve Bank President Neel Kashkari laid out a roadmap for monetary policy Wednesday that calls for a pause in interest rate hikes, followed by rate cuts, but not until the federal funds rate reaches 5.4%. Kashkari, who will be voting on the Fed’s policy-making Federal Open Market […]
<strong>BOJ December Meeting Summary: Must Keep Easing Stance to Help Wage Hikes, Stable 2% Inflation</strong>
–Concerned About Weakened Bond Market Functions, Board Members Argue for Expanding JGB Yield Trading Range –Members See JGB Range Adjustment as Not Tightening –Members Also Discuss Eventual Exit from Easing in Future with No Specifics By Max Sato (MaceNews) – Bank of Japan board members argued that the bank should maintain its easing stance to […]
<strong>BOJ Keeps Basic Easing Stance, Expands 10-Year JGB Trading Range to 0.5 Pct Point Around Zero from 0.25 Point</strong>
–BOJ Sees Current Spike in Core CPI to Ease Toward Mid-FY23 on Easing Effects of Energy, Food, Durable Goods Markups By Max Sato (MaceNews) – The Bank of Japan said Tuesday its policy board decided unanimously to allow the yield on the 10-year Japanese government bonds to rise to 0.5% from the current cap of […]
<strong>FOMC Hikes Funds Rate 50 BP to 4.25-4.50%; ‘Ongoing Increases’ Foreseen</strong>
– Powell Stresses Fed Commitment Tt Lower Inflation Despite Slower Pace ……. – Officials Raise 2023 Funds Rate Projection to Median 5.1%, Up From 4.6% – Officials Also Revise Up Inflation, Unemployment Forecasts; Revise GDP Growth Down By Steven K. Beckner (MaceNews) – The Federal Reserve closed out an eventful year with a seventh straight […]
TRANSCRIPT: Fed’s Powell Answers Reporters’ Questions after FOMC Decision
WASHINGTON (MaceNews) – The following is the Federal Reserve’s transcript of Fed Chair Jerome Powell’s news conference Wednesday, which followed the Federal Open Market Committee police statement: OPENING STATEMENT IN PROGRESS: substantially more evidence to give confidence that inflation is on a sustained downward path. Price pressures remain evident across a broad range of […]
FOMC Raises Fed Funds Rate by 50 BPS As Expected; ‘Dot Plot’ More Hawkish Than Expected
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday announced a 50 -basis point rate hike, just as expected, with the participants’ quarterly projections slightly more hawkish than expected. The “dot plot’ raised expectations for the so-called terminal rate, where the fed funds rates will rest at the end of the hiking cycle: Otherwise, the […]