US ISM Manufacturing Index Hits 14-Month Low in January As Supply Delays, Labor Shortages Linger
–ISM: Firms Seeking Supply-Demand Equilibrium; New Orders Plunge–ISM Concerned About Backlog Orders Slide To 15-Month Low–Supplier Delivery Delays Easing But Still Hurting Production By Max Sato (MaceNews) – The U.S. manufacturing sector index compiled by the Institute for Supply Management Tuesday fell to a 14-month low of 57.6 (versus the Econoday consensus forecast for 57.5) […]
KC Fed’s George: FOMC Needs to Move ‘Deliberately’ To Raise Federal Funds Rate
Funds Rate ‘Far Away’ From ‘Normal’ Monetary Policy ‘Out of Sync’ With Economic Outlook By Steven K. Beckner (MaceNews) – Kansas City Federal Reserve Bank President Esther George said Monday that the Fed needs to move “deliberately” to withdraw the unprecedented monetary stimulus adopted to counter the Covid lockdown-induced recession. George, who is voting this […]
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 […]
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 […]
BofA Global Research Fund Manager Survey: Global Investors Expect Above-Trend Growth, Inflation Peak in 2022
–Hawkish Central Bank Hikes Still Biggest ‘Tail Risk’ By Vicki Schmelzer NEW YORK (MaceNews) – Global investors polled at the start of 2022 looked for above-trend growth and an inflation peak in the coming year, according to the findings of BofA Global Research’s monthly fund manager survey, released Tuesday. In January, a net 1% of […]
NY Fed’s Williams: ‘Makes Sense’ To Begin To Remove Accommodation
‘Dramatic’ Job Gains, High Inflation Means ‘Approaching’ Liftoff Doesn’t Expect Steep Rate Hikes; Rejects ‘Extreme Scenarios’ Funds Rate Should Go ‘Somewhere Above 2% Down The Road’ Unclear How Long After Liftoff Balance Sheet Shrinkage Will Start Not As Long As Last Time By Steven K. Beckner (MaceNews) – New York Federal Reserve Bank President John […]
FED BEIGE BK SEES MODEST EXPANSION, HIGHER PRICES, SOME COOLING OF EXPECTATIONS, SOME SUPPLY CHAIN STABILIZATION
WASHINGTON (MaceNews) – The latest Beige Book survey of economic conditions coast-to-coast saw a “modest” pace of expansion as 2021 ended, with some cooling of the generally optimistic expectations for the new year and some scattered improvement in transportation bottlenecks, the Federal Reserve reported Wednesday. The survey, assembled by the Kansas City Fed through January […]
Fed’s Powell Reassures on Balance Sheet Runoff, Rate Hikes, Ultimate Control of Inflation – With Reservations
–Labor Supply Can Become an Issue Going Forward for Inflation–Whether There are Three Rate Hikes This Year Depends on Data By Denny Gulino WASHINGTON (MaceNews) – Without getting too specific, Federal Reserve Chair Jay Powell Tuesday pledged to quickly leave behind the era of emergency measures, fighting inflation while aware its current causes are largely […]
KC Fed’s George Prefers Shrinking Balance Sheet ‘Earlier Rather Than Later’
– ‘Time Has Come’ To Transition to More ‘Normal’ Monetary Stance – Urges FOMC Should ‘Take First Step’ to Tighten Monetary Policy – FOMC Could Raise Rates First, but Must Start to Shrink Balance Sheet By Steven K. Beckner (MaceNews) – Kansas City Federal Reserve Bank President Esther George asserted the need Tuesday for a […]
<strong>Powell Vows to Keep ‘Elevated’ Inflation From Getting ‘Entrenched;’ Doesn’t Say How</strong>
By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell pledges the Fed will act to prevent already “elevated” inflation from becoming further “entrenched” in congressional testimony prepared for delivery Tuesday morning. However, the Fed chief does not elaborate on how precisely he and his fellow policymakers will proceed to combat wage-price pressures in […]