Bank of Canada Continues to Provide Measured Rate Relief Amid High Uncertainty over Growth, Inflation Triggered by Trade War
–BOC Trims Policy Rate By 25 Basis Points To 2.75% in 7th Straight Rate Cut as Widely Expected–Governor Macklem: Governing Council Will Proceed ‘Carefully’ with Any Further Changes to Policy Rate–Macklem: Council Didn’t Seriously Consider 50-Basis Point Cut Due to Uncertainty Over When and How Much Trade War Will Boost Prices–BOC Surveys: Threats of New […]
Powell Repeats Economy ‘In Good Place’: FOMC Needn’t Be in Hurry To Ease
– Largely Brushes Off Signs of Softening, Uncertainty For Now – Economy Doesn’t Need Fed to Do Anything: ‘We Can And We Should Wait’ – Other Fed Officials Sounding More Concerned About Economic Outlook By Steven K. Beckner (MaceNews) – Federal Reserve Chairman Jerome Powell continued Friday to say that the Fed need not be […]
TARIFFS STATE OF PLAY: Confusion as Tariffs and Tariff Threats Multiply
WASHINGTON (MaceNews) – As one round of tariffs took effect Tuesday and more were threatened, rampant uncertainty permeated plunging U.S. stock markets while interest rates continued to dramatically ease. Analysts found themselves giving contradictory assessments on the business channels as the probabilities for more Federal Reserve rate cuts this year were coupled with dire predictions […]
Japan’s Government Keeps Economic Recovery Scenario Despite Headwinds of High Costs of Living, Trump Tariffs, Sluggish China Pickup
By Max Sato (MaceNews) – Japan’s government maintained its cautiously optimistic assessment for the sixth straight month, saying the economy is expected to stay on a “modest recovery” track, overcoming the lingering headwinds of high domestic costs of living, the risk of a global trade war initiated by the Trump administration and wobbly Chinese growth. […]
Preview: Bank of Canada Set to Slow Its Rate Cut Pace to 25 Basis Points Wednesday While Seeking Shelter from Imminent US Import Tariff Storm
By Max Sato (MaceNews) – The Bank of Canada is widely expected to trim its policy interest rate – the target for overnight lending rates – by a “more gradual” pace of 25 basis points to 3.0% on Wednesday in a pre-emptive move to help shield the economy from the threat of stiff tariffs on […]
UPDATE: Fed Officials Take Cautious Approach to Further Rate Cuts As Late Jan FOMC Nears
– Harker Still Sees Rates Heading Lower; But Now ‘Appropriate To Take A Pause’ – Collins Calls for ‘Patient Approach to Policy’; Cuts Could Go Faster or Slower – Schmid: Funds Rate May Already Be ‘Neutral;’ Favors Further Balance Sheet Shrinkage – Bowman Urges ‘Caution;’ Monetary Policy Not As Restrictive As Some Think By Steven […]
Canadian Prime Minister Trudeau Steps Down amid Calls for His Resignation from Opposition, Own Party; Suspends Parliament Until March 24
–Trudeau Buys Time for Liberal Party to Pick Leader That Can Fend Off Conservatives’ Lead in Polls –Deputy Prime Minister Freeland, Former Bank of Canada Governor Carney Seen as Top Candidates but Party Support Uncertain By Max Sato (MaceNews) – Canadian Prime Minister Justin Trudeau announced Monday that he is stepping down as leader of […]
Japan’s Government Still Sees Modest Economic Recovery Despite Sluggish Consumption, Flat Real Wage Growth Amid Food-Led Inflation
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy’s “modest recovery” is set to continue despite sluggish consumer spending and flat real wage growth amid high costs for food and other necessities. In its monthly report for December released Friday by the Cabinet Office, the government said the economy is […]
Japan Still Sees Modest Economic Recovery but Warns It Now Needs to Watch Future US Policy amid Headwinds of Inflation, Middle East Tensions, Weak Yen
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy’s “modest recovery” is set to continue thanks to wage hikes amid widespread labor shortages, but urged a close watch on the future U.S. government policy as well as lingering high costs for necessities, geopolitical risks and the weak yen. In its […]
Japan Q3 GDP Slows on Capex, Public Works Pullbacks as Expected, Propped Up by Downward Revision to Q2 Growth
–Q3 GDP +0.2% Q/Q, +0.9% Annualized Vs. Median Forecasts of +0.2%, +0.6%–External Demand’s Unexpected Dive Buoyed by Surprisingly Firmer Consumption Despite High Costs, Earthquake, Typhoons–Domestic Demand Pushes Up GDP by 0.6 Point, Net Exports Slashes Growth by 0.4 Point By Max Sato (MaceNews) – Japan’s third quarter economic growth slowed to 0.2% on quarter, on […]