US Economy Roaring Back, But FOMC Not Ready To Respond … Yet
By Steven K. Beckner (MaceNews) – The economy may be at “an inflection point,” as Federal Reserve Chairman Jerome Powell has said, but monetary policy remains more reflexive than anything, which is to say he and his fellow Fed policymakers are still very much in emergency response mode, concentrating on helping the economy recover from […]
ECB To Accelerate PEPP Purchases With Immediate Outlook Still Subject to Downside Risks
By Laurie Laird — April meeting Affirms Conclusions of March gathering LONDON (MaceNews) – The European Central Bank will continue to accelerate purchases through its emergency quantitative easing programme, with the eurozone economy still facing immediate downside risks. An “ample degree” of monetary accommodation remains necessary, said ECB President Christine Lagarde, briefing reporters after Thursday’s […]
Clarida Keys On Inflation Expectations As Determining Shape of Monetary Policy
By Steven K. Beckner (MaceNews) – Federal Reserve Vice Chairman Richard Clarida put heavy emphasis Wednesday on the behavior of inflation expectations in determining the proper response of monetary policy as the economy evolves in coming years, Clarida, whose monetary economics bona fides have made him an influential lieutenant to legally trained Fed Chairman Jerome […]
Fed’s Powell: Economic Recovery Uneven, Incomplete; Fed Must Keep Providing Support
By Steven K. Beckner (MaceNews) – Federal Reserve Chairman Jerome Powell hailed recent strong economic indicators Thursday, but said the recovery is uneven and incomplete and vowed continued monetary support “until the job is done.” Powell, addressing an International Monetary Fund Debate on the Global Economy, repeated that he and his fellow policy-makers on the […]
FOMC Minutes Show Determination to Stay the Course and Stick With Message Until Outcomes Improve
WASHINGTON (MaceNews) – The minutes of the most recent Federal Open Market Committee released Wednesday only reinforced the central bank’s pandemic-era’s message, that it is standing pat on its highly accommodative stance until employment has fully recovered while it carefully monitors the Treasuries market for signs of stress. Government pandemic relief is hastening recovery, several […]
Fed’s Evans To Reporters: Too Early To Start Talking About Enough Progress To Taper Bond Buying
By Steven K. Beckner (MaceNews) – Chicago Federal Reserve Bank President Charles Evans was upbeat about the economic outlook Wednesday, but said the Fed is still “some ways” from achieving its employment and inflation goals and therefore needs to retain its ultra-loose monetary policy stance. Evans, a 2021 voting member of the Fed’s policy making […]
Fed’s Bostic Optimistic About Economy But Thinks It’s Too Soon To Consider Tightening
By Steven K. Beckner MaceNews) – Atlanta Federal Reserve Bank President Raphael Bostic spoke optimistically about the economic outlook Tuesday, but made clear improving prospects have not yet made him more inclined to firm monetary policy. Bostic, a voting member of the Fed’s policy making Federal Open Market Committee, downplayed the risks of “overheating” or […]
US Data Preview: Stimulus Ebullience Vs. Virus Resurgence Fear
WASHINGTON (MaceNews) – Is anyone watching economic data in the week ahead, when there are least 12 Fedspeak appearances, a restless 10-year yield, the background threat of a wider Covid-19 surge? Sure, we all have to take durable goods orders (Wednesday) and new home sales (Tuesday) and personal income (Friday) into account, even if it’s […]
FOMC Keeps Monetary Policy Loose; Powell Signals It will Remain So
By Steven K. Beckner (MaceNews) – Federal Reserve policy-makers voted Wednesday to maintain their super loose credit policies, and Chair Jerome Powell gave no hint the Fed will move to tighten its monetary stance any time soon. While joining his colleagues in expressing encouragement with the economy’s improved performance and optimism about the outlook, Powell […]
FOMC: Projections See Median Rate Hike Forecast Stable With Only Additional 2 ’23 Rate Hike Dots to Total 7
WASHINGTON (MaceNews) – The FOMC’s updated quarterly projections Wednesday saw a stable median with two more ’23 rate-hike dots, while repeating it aims for an inflation rate “moderately above” 2%. The following is the text of the policy statement: The Federal Reserve is committed to using its full range of tools to support the U.S. […]