Bank of England Lifts Rates; Sends Hawkish Signals
— Decision was a “close call,” says governor, as four members argue for a steeper increase LONDON (MaceNews) – The Bank of England lifted interest rates for the second straight meeting — the first consecutive hikes since 2004 —but surprised the markets with a decidedly hawkish outlook, according to minutes of the February Monetary Policy Committee […]
KC Fed’s George: FOMC Needs to Move ‘Deliberately’ To Raise Federal Funds Rate
Funds Rate ‘Far Away’ From ‘Normal’ Monetary Policy ‘Out of Sync’ With Economic Outlook By Steven K. Beckner (MaceNews) – Kansas City Federal Reserve Bank President Esther George said Monday that the Fed needs to move “deliberately” to withdraw the unprecedented monetary stimulus adopted to counter the Covid lockdown-induced recession. George, who is voting this […]
FOMC Says Expects to ‘Soon Be Appropriate’ to Change Target Rate for Fed Funds
WASHINGTON (MaceNews) – The following is the Federal Open Market Committee’s statement Wednesday of its policy stance, accompanied by a reaffirmation of its August 2020 statement that the Fed’s main tool remains changes in the federal funds rate while asset purchases diminish: Indicators of economic activity and employment have continued to strengthen. The sectors most […]
Bank of Canada Keeps Record-Low Rate But Ends Forward Guidance on Easing
— BOC’s Macklem: Taking Deliberate Steps Toward Higher Interest Rates— BOC To Keep Govt Bonds on Its Balance Sheet Until It Starts Raising Rates— BOC Revises Up 2022 CPI Forecast To 4.2% From 3.4%; 2023 Unchanged at 2.3%— BOC Lowers 2022 GDP Forecast to 4.0% From 4.3%, 2023 To 3.5% Vs 3.7% By Max Sato […]
Bank of Canada Policy Statement – Holds Rates Steady, Ends Extraordinary Forward Guidance on Policy Rate
(MaceNews) – The following is the text of Wednesday’s Bank of Canada policy announcement: The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ %, with the Bank Rate at ½ % and the deposit rate at ¼ %. With overall economic slack now absorbed, the […]
BOJ Dec Minutes: Still Need Easy Money After Shrinking Covid Funding Program
— BOJ Members Also Debate Upside, Downside Risks Amid Uncertain Outlook By Max Sato (MaceNews) – Bank of Japan board members called for a continued accommodative monetary policy stance, saying the situation in Japan is different from other major economies where central banks are trying to control high inflation, the minutes of the bank’s Dec. […]
FOMC To Continue Monetary Normalization Talks As Bond Buying Winds Down
By Steven K. Beckner (MaceNews) – Going into its first meeting of the year, it might seem as if the Federal Open Market Committee has already scripted its monetary policy for coming months. After all, Federal Reserve Chairman Jerome Powell and his colleagues on the Fed’s policy making committee have been pretty explicit about their […]
NY Fed’s Williams: ‘Makes Sense’ To Begin To Remove Accommodation
‘Dramatic’ Job Gains, High Inflation Means ‘Approaching’ Liftoff Doesn’t Expect Steep Rate Hikes; Rejects ‘Extreme Scenarios’ Funds Rate Should Go ‘Somewhere Above 2% Down The Road’ Unclear How Long After Liftoff Balance Sheet Shrinkage Will Start Not As Long As Last Time By Steven K. Beckner (MaceNews) – New York Federal Reserve Bank President John […]
Fed’s Powell Reassures on Balance Sheet Runoff, Rate Hikes, Ultimate Control of Inflation – With Reservations
–Labor Supply Can Become an Issue Going Forward for Inflation–Whether There are Three Rate Hikes This Year Depends on Data By Denny Gulino WASHINGTON (MaceNews) – Without getting too specific, Federal Reserve Chair Jay Powell Tuesday pledged to quickly leave behind the era of emergency measures, fighting inflation while aware its current causes are largely […]
<strong>Powell Vows to Keep ‘Elevated’ Inflation From Getting ‘Entrenched;’ Doesn’t Say How</strong>
By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell pledges the Fed will act to prevent already “elevated” inflation from becoming further “entrenched” in congressional testimony prepared for delivery Tuesday morning. However, the Fed chief does not elaborate on how precisely he and his fellow policymakers will proceed to combat wage-price pressures in […]