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 […]
STATUS CHECK – STILL COUNTING, FUMING AND SUING
WASHINGTON (MaceNews) – The following is Thursday’s status check of developments in the U.S. that can influence economic, health and political outcomes. Peace, harmony and finally a resolution to a hard-fought campaign? Of course not. This is 2020. Thursday night and key states still too close to call, with Joe Biden’s lead in Arizona diminishing […]
FED’S POWELL ACKNOWLEDGES SLOWDOWN, NEED FOR STIMULUS
By Denny Gulino WASHINGTON (MaceNews) – Federal Reserve Chair Jay Powell was as low key as possible in answering questions about the latest policy meeting as vote counts are deciding the next president but he did drop a hint that the asset purchase program may be in for some innovation. “The recent rise in new […]
FOMC POLICY STATEMENT AS IS
WASHINGTON (MaceNews) – The following is the Federal Open Market Committee policy statement issued Thursday, which added nothing to the previous stand-still statement: The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals. The COVID-19 […]
BANK OF ENGLAND EXPANDS QE PROGRAMME; LEAVES RATES UNCHANGED
— Forecasts Q4 GDP Contraction Raises Speculation Negative Rates in 2021 By Laurie Laird LONDON (MaceNews) – The Bank of England Thursday expanded its bond-buying programme but left its benchmark interest rate unchanged at its latest policy meeting, acknowledging the downside risks to forecasts as a second wave of coronavirus grips the country. The Bank […]
STATUS CHECK – FROM THE SEAT OF POWER, POWERLESSNESS AS VOTES TOTALED
WASHINGTON (MaceNews) – The following is Wednesday’s status check of developments in the U.S. that can influence economic, health and political outcomes. The networks plodded on Wednesday night, with nothing much new to report, as talking heads artfully kept the ball rolling, even if it was in circles, waiting. President Trump was watching, likely clicking […]