FOMC Set to Proceed ‘Carefully’ on Road to Tighter Monetary Policy, But Ultimate Destination Unclear
– Must Decide Pace of Rate Hikes, Where Neutral Is, and Whether Neutral Is High Enough – Fed Getting Closer to Balance Sheet Reduction But Funds Rate Primary Policy Tool By Steven K. Beckner (MaceNews) – It seemed virtually a foregone conclusion that the Federal Reserve would start raising short-term interest rates in mid-March after Jerome Powell’s […]
Fed’s Powell Will Ask for 25 bp Rate Hike March 16; First Of ‘Series’ of Rate Hikes
– But FOMC Will Withdraw Monetary Stimulus ‘Carefully’ To Avoid ‘Adding Uncertainty’ – Ultimate Aim is ‘Neutral’ Rate of 2-2.5%; Perhaps Higher; Must Act ‘With Care’ By Steven K. Beckner (MaceNews) – Russia’s invasion of Ukraine will not prevent the Federal Reserve from beginning to raise interest rates in two weeks, but it will make the Fed more cautious about withdrawing monetary […]
Bank of Canada Hikes Policy Rate To 0.50% From Record Low 0.25% To Fight Inflation
–BOC Keeps Reinvesting in Government Bonds on Its Balance Sheet –BOC: Russia’s Invasion of Ukraine ‘A Major New Source of Uncertainty’–BOC: Expect Further Rate Hikes As Economic Growth, Inflation Pressures Continue –BOC: To Consider Start of Quantitative Tightening Based on Economic Assessment By Max Sato (MaceNews) – The Bank of Canada on Wednesday raised its […]
Japan February Tokyo Core CPI Rise Picks Up From January on Utilities, Processed Food
–Hotel Fees Slower After 2021 Double-Digit Gains Over 2020 Subsidized Discounts–Utilities Leading Energy Higher; Durable Goods Down As Stay-at-Home Demand Wanes–Most of Base Effect in Mobile Phone User Fee Cuts To Last Through March By Mas Sato (MaceNews) – The year-on-year rise in consumer prices in Tokyo, the leading indicator of the national average, picked […]
NY Fed’s Williams Nixes 50 BP March Hike in Federal Funds Rate
– ‘No Compelling Argument’ For Big Move In the Beginning of Firming Process – Affirms Market Expectations of ‘More Normal’ Funds Rate of 2-2.5% by end 2023 – MBS Sales Should Only Be Considered ‘Down The Road’ – ‘Confident’ Fed ‘Can Manage the Soft Landing’ By Steven K. Beckner (MaceNews) – New York Federal Reserve […]
Japan January Core CPI Rise Shrinks as Hotel, Insurance Upward Base Effects Wane
— Both Core and Total CPI Measures Mark 5th Straight Y/Y Gains on Energy — Utilities Push Up Overall Energy Costs; Durable Goods Prices Slide By Max Sato (MaceNews) – Consumer prices in Japan posted the fifth straight year-on-year rise in January but the pace of increase decelerated sharply as the 2021 base effects of […]
Future of US Inflation Depends on Shelter Costs Flywheel
By Denny Gulino WASHINGTON (MaceNews) – Last month’s strong rate of increase in consumer prices reported Wednesday was the same, and for some major categories less, than in the previous month, suggesting that mathematical base effects will force indicated inflation to decelerate later this year. Most significantly, shelter costs, that contribute a third of all […]
Japan January Producer Price Y/Y Rise Slows on Easing Energy, Commodities
–Japan Producer Prices Rebound M/M After Being Flat in December By Max Sato (MaceNews) – Producer prices in Japan continued rising from year-earlier levels in January amid lingering supply bottlenecks but the pace of increase decelerated further after hitting an over four-decade high in November in light of what appears to be a temporary easing […]
Updated Preview: Japan Q4 GDP Rebound Seen on Easing Supply Bottlenecks, Covid Lull
–Updates with latest consumption data in paras 6-7, government measures in para 17, ESP Forecast in paras 18-19, Watchers’ survey at bottom — Consumption, Capex, Net Export Gains Behind Expected Solid Q4 Growth — Q1 GDP Face Downside Risks As Omicron-Led Covid Spike Hurts Sentiment By Max Sato (MaceNews) – Japan’s gross domestic product for […]
ECB Sounds More Hawkish Note But Leaves Policy Unchanged
— President Christine Lagarde Acknowledges that Inflation is More Likely to Overshoot Target (MaceNews) – The European Central Bank “will not be complacent” about record-high eurozone inflation, a more hawkish stance from ECB President and long-term dove Christine Lagarde Thursday. “Compared to December, inflation risks are tilted to the upside, particularly in the near term,” […]