FOMC BEGINS WITH CASE FOR RATE CUT STILL NOT CLEAR CUT
–The Boeing 737 MAX Rate Cut? By Denny Gulino WASHINGTON (MaceNews) – If the Federal Open Market Committee wanted some cover to back out of a rate cut Wednesday it could look no farther than toward the Treasury Department which Monday declared, “Downside risks in the second half of 2019 appear to be lessening.” Of […]
ECB SIGNALS LOWER RATES AHEAD, TO CONSIDER NEW QE
By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank signaled its intention to loosen monetary policy in response to the slowing euro zone economy, adding the possibility of lower interest rates to its forward guidance and pledging to examine a new round of quantitative easing. In a statement issued after Thursday’s governing council meeting, […]
FED’S POWELL REINFORCES THE ASSUMPTIONS OF A JULY RATE CUT
–Fed Wants to ‘Use its Tools’ To Keep Expansion Going By Denny Gulino WASHINGTON (MaceNews) Market assumptions of a July 31 rate cut became even more entrenched Thursday with Federal Reserve Chairman Jerome Powell’s renewed assertion the central bank is ready to consider more accommodation in the face of signs of weakness elsewhere in the […]
FED’S POWELL HINTS AN INSURANCE RATE CUT; MUCH DATA YET TO COME
–‘Committed to Using Our Tools’ to Keep Expansion Going By Denny Gulino WASHINGTON (MaceNews) – Federal Reserve Chairman Jerome Powell came to Capitol Hill Wednesday to emphasize those cross currents of uncertainty still “weigh on the economy” and while never uttering the words “insurance” or “rate cut,” he repeated how important he feels it is […]
BANK OF CANADA SEES UNCERTAIN OUTLOOK ON GLOBAL WORRIES
By Gordon Isfeld OTTAWA (MaceNews) – Growing pressure on the global economy may not have seriously dented the outlook for Canada’s near-term growth, but other factors – such as international trade frictions and lingering squabbles over how to resolve the Brexit crisis – are continuing to contribute to growth uncertainty. “Evidence has been accumulating that ongoing […]
US JUNE PAYROLLS +224K, CONFOUNDING FORECASTERS AND IMPERILING RATE CUT
By Denny Gulino WASHINGTON (MaceNews) – The carefully wrought July rate-cut scenario is now challenged by the blockbuster 224,000 surprise payrolls total for June, with Friday’s report pitting economic pessimists against prospects for renewed strength for the longest U.S expansion in history. Many forecasters who were confounded by a return to 200,000 plus payrolls growth […]
FED’S MESTER: U.S. Q2 SLOWDOWN NOT SUFFICIENT TO TRIGGER RATE CUT
By Laurie Laird LONDON (MaceNews) – While U.S. growth appears to have weakened over the second quarter, the current slowdown is insufficient to trigger a reduction in interest rates, according to Cleveland Federal Reserve President Loretta Mester. “Given the current level of the funds rate and my current baseline outlook,” interest rates represent an “appropriate […]
FED’S POWELL THREADS NEEDLE, NO PROMISES YET STRONGER CASE FOR CUTS
–More Uncertainty And Ready to ‘Act as Appropriate’ By Denny Gulino WASHINGTON (MaceNews) – Federal Reserve Chairman Jerome Powell Wednesday carefully refrained from promising rate cuts while suggesting they have more support amid increased uncertainty about growth, inflation and international developments – all in the context of a well behaving economy. “We are quite mindful […]
FOMC: ‘TO ACT AS APPROPRIATE;’ ‘PATIENCE’ GETS THE AXE
–‘Uncertainties About This Outlook Have Increased’ –St. Louis Fed’s Bullard Dissents WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday decided not to cut rates, triggering one member’s dissent, and promised only to “act as appropriate” while excising the word “patience.” The Committee generally stayed with its outlook but said “uncertainties” have increased. St. Louis […]
ECB: RATES HOLDING REST OF YR; EASES POLICY STANCE
By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank adopted a markedly easier policy stance at Thursday’s governing council meeting, just months after terminating its multi-billion dollar quantitative easing programme, following a dramatic downward revision to its growth forecast for 2019. From September, the ECB will launch a new series of quarterly targeted longer-term […]