<strong><br>FOMC Tees Up March Rate Hike Now That U.S. At ‘Maximum Employment’</strong>
– Powell Sees ‘Substantial’ Balance Sheet Shrinkage After Rate Hikes Begin – Powell Says ‘Couple’ More Discussions Needed on Balance Sheet Reduction Strategy – Powell Implies Rate Hikes May be More Aggressive Given High Inflation, Tight Labor By Steven K. Beckner (MaceNews) – The Federal Reserve took another giant step toward removing some monetary accommodation […]
FOMC Says Expects to ‘Soon Be Appropriate’ to Change Target Rate for Fed Funds
WASHINGTON (MaceNews) – The following is the Federal Open Market Committee’s statement Wednesday of its policy stance, accompanied by a reaffirmation of its August 2020 statement that the Fed’s main tool remains changes in the federal funds rate while asset purchases diminish: Indicators of economic activity and employment have continued to strengthen. The sectors most […]
Bank of Canada Keeps Record-Low Rate But Ends Forward Guidance on Easing
— BOC’s Macklem: Taking Deliberate Steps Toward Higher Interest Rates— BOC To Keep Govt Bonds on Its Balance Sheet Until It Starts Raising Rates— BOC Revises Up 2022 CPI Forecast To 4.2% From 3.4%; 2023 Unchanged at 2.3%— BOC Lowers 2022 GDP Forecast to 4.0% From 4.3%, 2023 To 3.5% Vs 3.7% By Max Sato […]
Bank of Canada Policy Statement – Holds Rates Steady, Ends Extraordinary Forward Guidance on Policy Rate
(MaceNews) – The following is the text of Wednesday’s Bank of Canada policy announcement: The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ %, with the Bank Rate at ½ % and the deposit rate at ¼ %. With overall economic slack now absorbed, the […]
German Ifo Jan. Business Sentiment Starts the Year on an Improved Note
ZURICH (MaceNews) – Sentiment among German businesses rose in January, reversing a series of declines since July, led by higher expectations according to the latest report from the Ifo Institute in Munich. Ifo’s Business Climate Index rose to 95.7 in January from a revised 94.8 (94.7) in December. The result is better than the slight […]
BOJ Dec Minutes: Still Need Easy Money After Shrinking Covid Funding Program
— BOJ Members Also Debate Upside, Downside Risks Amid Uncertain Outlook By Max Sato (MaceNews) – Bank of Japan board members called for a continued accommodative monetary policy stance, saying the situation in Japan is different from other major economies where central banks are trying to control high inflation, the minutes of the bank’s Dec. […]
Japan Dec Core CPI Rise Slows on Durable Goods, Hotels Amid Rising Energy
— Both Core and Total CPI Measures Mark 4th Straight Y/Y Gains— Utilities Push Up Overall Energy Costs, Offsetting Recent Pullback in Gasoline— Japan 2021 CPI Down 0.2%, 2nd Straight Annual Drop After -0.2% in 2020 By Max Sato (MaceNews) – Rising utilities and processed food costs propped up consumer prices in Japan in December […]
FOMC To Continue Monetary Normalization Talks As Bond Buying Winds Down
By Steven K. Beckner (MaceNews) – Going into its first meeting of the year, it might seem as if the Federal Open Market Committee has already scripted its monetary policy for coming months. After all, Federal Reserve Chairman Jerome Powell and his colleagues on the Fed’s policy making committee have been pretty explicit about their […]
ECB Governing Council Split Over Expansion of APP Programme Announced in December
— Some members argued for a more rapid return to policy normalisation LONDON (MaceNews) – The European Central Bank’s decision to expand its asset purchase programme from April met with spirited opposition from some members of the Governing Council, suggesting deep divisions amongst rate setters, according to minutes of the policy meeting on 15-16 December, […]
Japan December Exports Continue Rising on Reopening Demand, Car Supply Pickup
— Import Gain Remains High on Energy, Leading to 5th Straight Trade Deficit By Max Sato (MaceNews) – Japanese exports rose from a year earlier for the 10th straight month in December, thanks to reopening demand for iron and steel and electronic parts as well as easing supply constraints for the auto industry, data released […]