ECB’S LAGARDE: BANK TO FOCUS ON ‘FINANCING CONDITIONS;’ DOWNPLAYS EXPANSION OF PEPP
–Ongoing Strategic Review Will Assess Inflation Measurement and ‘Symmetry’ in Meeting Target By Laurie Laird LONDON (MaceNews) – The European Central Bank could continue to rely on its long-term financing operations to provide stimulus to the Covid-stricken euro zone economy rather than expanding its asset purchase programme, according to the Bank’s leader Wednesday. “We’re going […]
FED’S GEORGE: TOO SOON TO THINK OF ADJUSTING MONETARY POLICY; MUST ‘WAIT AND SEE’
–Fed Won’t Hike Funds Rate If Inflation Goes Over 2% –Would Have To Decide How To React if Inflation Rises in ‘Unanticipated Ways’ By Steven K. Beckner (MaceNews) – Kansas City Fed President George said Tuesday that monetary policy needs to “remain accommodative for some time” and said it’s “too soon to speculate about the […]
FED’S BOSTIC: READY TO ‘RECALIBRATE’ POLICY IF ECON STRONG BUT DON’T SEE 2021 HIKES
By Steven K. Beckner (MaceNews) – Atlanta Federal Reserve Bank President Raphael Bostic said Monday he would be willing to consider “recalibrating” the Fed’s monetary policy stance if the economy proves stronger than expected, but said he can’t envision raising the federal funds rate from near zero until next year at the earliest. Bostic, a […]
BOE OFFICIAL MAKES FORCEFUL CASE FOR NEGATIVE UK INTEREST RATES
—Tenreyro Sees Diminishing Benefit of QE as UK Output Contracts Sharply By Laurie Laird LONDON (MaceNews) – A top Bank of England rate setter forcefully endorsed the case for sub-zero interest rates, raising questions over the continued benefits of quantitative easing with UK output in the midst of another severe contraction. “My overall assessment is […]
EVANS: MON. POLICY WELL POSITIONED NOW; DECIDE IN SPRING ABOUT MORE QE
Can Adjust Pace, Duration of Bond Buys If Decide Need More Accommodation Not Concerned About Rising Bond Yields If Reflect Stronger Recovery Don’t Raise Funds Rate Until Inflation Overshoots 2%, Averages 2% By Steven K. Beckner (MaceNews) – Chicago Federal Reserve Bank President Charles Evans suggested Monday that, as far as he’s concerned, it would […]
BOJ EXTENDS ASSET BUYING, SPECIAL FUNDING OPS UNTIL SEPT 2021 TO FIGHT COVID DRAG; TO REVIEW EASING TOOLS
By Max Sato (MaceNews) – The Bank of Japan Friday offered an early Christmas gift by extending the period of increased financial asset purchases and special funding operations aimed at promoting more lending to cash-strapped small businesses by six months until the end of September 2021. After a regular two-day policy meeting, the bank’s nine-member […]
BANK OF ENGLAND LEAVES POLICY UNCHANGED, BUT EXTENDS LENDING SCHEME
—MPC Hints at Symmetric Stance on Inflation Target, Willing to ‘Tolerate’ Inflation Overshoot By Laurie Laird LONDON (MaceNews) – The Bank of England left its main policy tools on hold after its latest rate-setting meeting on Wednesday, but extended the time frame of its supplemental lending scheme and hinted at a more symmetrical approach to […]
FED’S POWELL: TO TAKE A LONG TIME TO RAISE INFL RATE
–Virus Resurgence to Hit First-Quarter Economy By Denny Gulino WASHINGTON (MaceNews) – Federal Reserve Chair Jay Powell Wednesday said reaching the inflation target is going to take “some time” in an environment of disinflation around the world, when price pressure in any sector is no longer persistent. In the near term, however, he warned the […]
FOMC: RATES NEAR ZERO THRU 2023
WASHINGTON (MaceNews) – The Federal Open Market Committee, as expected, stood still in its latest policy statement Wednesday, accompanied by quarterly projections that saw the federal funds rate at 0.1% through 2023. The following is the text of the FOMC statement: The Federal Reserve is committed to using its full range of tools to support […]
PREVIEW: FOMC TO REAFFIRM EASY MONEY POLICY; EXTEND FORWARD GUIDANCE TO BOND BUYING
By Steven K. Beckner (MaceNews) – For the Federal Reserve these days, it’s all about shaping and managing expectations – expectations for indefinite continuation of ultra-accommodative monetary policy. That effort will continue at the Fed’s Dec. 15-16 Federal Open Market Committee meeting. The FOMC heads toward its final meeting of 2020 amid very unusual circumstances […]