FED’S BULLARD: MON POLICY ‘GREAT’ BUT CAN ‘REDOUBLE’ QE EFFORTS IF NEEDED
–Fed Established Expectations No Rate Hikes ‘For A Long Time” –Fed, Tsy Have Flexibility To Deal Wtih Renewed Financial Stress if Needed –Economy Holding Up; Expect Above Trend Growth Q4, 1st half –Pandemic Doesn’t Necessarily Impede Output, Employment By Steven K. Beckner (MaceNews) – St. Louis Federal Reserve Bank President James Bullard Tuesday spoke hopefully […]
ECB’S SCHNABEL SUGGESTS EXTENDING TIME FRAME TO RETURN INFLATION TO TARGET
— Rate setter says the Bank has lost the “trust” of the public By Laurie Laird LONDON (MaceNews) — A key European Central Bank official Tuesday suggested adjustments to bank’s mandate, particularly the timing of returning inflation to target, while hinting that historically-loose monetary policy could become ever-less effective in stimulating economic growth. “It could […]
BOE SEES DIMINISHING MARGINAL RETURNS FROM ASSET PURCHASES
— External Rate Setters Lament Low Inflation, Raising Questions Over MPC Rift and Future Policy By Laurie LairdLONDON (MaceNews) – Top Bank of England rate setters agreed that quantitative easing will exert a diminishing influence on the UK economic recovery, raising questions about the tools available to the central bank as two external officials lamented […]
ECB’S LAGARDE: ASSET PURCHASES, CHEAP FINANCING ARE KEY TOOLS VS LATEST DOWNTURN
By Laurie Laird LONDON (MaceNews) – Europe’s top central banker suggested that expanded asset purchases and enhancements to the Bank’s long-term finance scheme are best suited to counter the latest eurozone downturn, while urging national governments to keep the fiscal taps flowing. “While all options are on the table, the pandemic emergency purchase programme (PEPP) […]
BANK OF ENGLAND: INFORMAL, NON-TARIFF BARRIERS POSSIBLE IN NO-DEAL BREXIT
–MPC’s Ramsden Sees Risk of ‘Trade Friction’ on Top of WTO Tariffs By Laurie Laird LONDON (MaceNews) — Bank of England leaders have begun to break their silence over the possibility of a no-deal Brexit, with a top policy maker voicing fears that a lack of cooperation between trading nations could introduce informal barriers to […]
LAGARDE HINTS AT REINTERPRETATION OF ECB MANDATE
–– Repeats HICP May Not Accurately Reflect Eurozone Inflation By Laurie Laird LONDON (MaceNews) – The leader of the European Central Bank hinted at a reinterpretation of the Bank’s price stability mandate and raised questions over the accuracy of the Bank’s key measure of inflation. “We have to be smart about the components that go […]
TOP ECB OFFICIAL DOWNPLAYS SYMMETRICAL INFLATION TARGET, RATE CUTS
—Governing Council’s Mersch Expresses Lukewarm Support for Lagarde By Laurie Laird LONDON (MaceNews) — A top European Central banker Monday expressed opposition to a symmetrical inflation target and raised questions over the efficacy of further rate cuts, while withholding full support for the central bank’s leader. “Symmetry does not mean that we would engage in […]
ECB’S KNOT: COVID VACCINE DOES NOT DISPEL ECONOMIC UNCERTAINTY
— Stresses Fiscal Policy Must Undertake Havy Lifting Vs Q4 Downturn By Laurie Laird LONDON (MaceNews) – The rapid development of a Covid vaccine is unlikely to provide a quick fillip to the battered European economy, according to a top European Central Bank official. While welcoming the announcement of positive medical trial results released on […]
CLEVELAND FED’S MESTER: ECONOMY TO NEED CONTINUED MONETARY, FISCAL SUPPORT
–Fed Needs To Think About How Low Rates Affect Financial Risks By Steven K. Beckner (MaceNews) – Although the U.S. economy has been recovering “faster than anticipated,” the Federal Reserve still needs the assistance of fiscal policy in returning to full employment and a more acceptable inflation pace, Cleveland Federal Reserve Bank President Loretta Mester […]
BOE SUGGESTS UK BANKS BETTER PREPARED FOR SUB-ZERO RATES THAN IN 2009
By Laurie Laird LONDON (MaceNews) – British banks are are sufficiently capitalised to continue lending even if official rates eventually fall below zero, according to two Bank of England rate setters Friday. Negative rates are most effective “when banks’ balance sheets are not under pressure for other reasons,” as was the case during the financial […]