Japan Weekahead: Bank of Japan Set to Keep 0.5% Policy Rate, Focus on Possible Moderation in FY26 Balance Sheet Trim; Exports Hit by Trump Tariffs, Underlying Inflation Still Below 2%
By Max Sato (MaceNews) – Here are the key Japanese economic and political events for the coming week. – Monday, June 16 1400 JST (0500 GMT/0100 EDT) – The Bank of Japan’s nine-member board begins its two-day policy meeting. On day one, board members compare notes on the economic and financial conditions in Japan and […]
Bank of Canada Pauses for 2nd Straight Meeting amid Trade War Uncertainty; Focused More on Firmer-Than-Expected Core Inflation, Sturdier GDP Growth
–BOC Keeps Policy Rate at 2.75% After 7 Rate Cuts Totaling 225 Basis Points from June 2024 Until March 2025–Governor Macklem: Only Forward Guidance Is: ‘Proceeding Carefully,’ Less Forward-Looking Than Usual–Mackem: CAD Weakness Lifted Import Costs but Recent Rebound to 72-73 Cents Vs. USD Should Reverse It By Max Sato (MaceNews) – The Bank of […]
TRANSCRIPT: Fed’s Powell Says Wait and See Effects of Tariffs on Inflation, Unemployment
WASHINGTON (MaceNews) – Federal Reserve Chair Jerome Powell Wednesday said in several different ways the Fed has to wait and see whatever effects on inflation and unemployment come from whatever the ultimate tariff rates are imposed on China and other countries – and beyond that, he said very little more. A transcript of the post-FOMC […]
FOMC Stands Pat, Sees Risks Up for Both Unemployment, Inflation
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday, as expected, decided to maintain its policy rate and the only notable addition to the policy statement was that the Fed sees “the risks of higher unemployment and higher inflation have risen.” The policy statement follows: Although swings in net exports have affected the data, recent […]
Preview: Japan Q1 GDP to Post 1st Contraction in 4 Quarters as High Costs Keep Consumers Wary, Exports Remain Flat amid Uncertain Global Growth Prospects
–Global Trade War May Lead to 2nd Straight GDP Slump in Q2 By Max Sato (MaceNews) – Japan’s gross domestic product for the January-March quarter is forecast to post its first contraction in four quarters, down a slight 0.1% on quarter, or an annualized 0.4%, in payback for a technical jump in net exports in […]
FED’S BEIGE BOOK: Analysts See ‘Pre-Downturn’ Assessment of Tepid Economy Coast to Coast
WASHINGTON (MaceNews) – The Federal Reserve’s latest “Beige Book” survey Wednesday of economic conditions in all 12 Fed Districts reflected widespread uncertainty because of shifting trade policy, softening consumer spending and worsening outlooks that hinted at an economy on the precipice of a downturn. The following is the national summary and District-by-District snapshots from the […]
Japan Seeks to Tide Over Trade War by Shoring Up Consumption, Keeps Gradual Economic Recovery View Despite Mixed Business Sentiment, Rising Inflation Risks
By Max Sato (MaceNews) – Japan’s government maintained its cautiously optimistic assessment for the eighth straight month, saying the economy is expected stay on a “modest recovery” track, but highlighted the growing uncertainty around the world triggered by the protectionist U.S. trade policy under President Trump. In its monthly report for April released Friday by […]
US TARIFFS STATE OF PLAY: Pres Trump Imposes Massive Global Tariffs Likely to Cause Widespread USA Price Hikes
WASHINGTON (MaceNews) – Amid much pessimism about severe economic domestic consequences, President Trump Wednesday imposed massive tariffs on several dozen countries including China and the European Union and a blanket 10% levy on all the rest. The Rose Garden announcement shook stock futures into large negatives while interest rates maintained lows last hit in October. […]
StL Fed’s Musalem: Must Lean Against Inflation If Expectations Become Unanchored
– May Have To Leave Rates Unchanged Longer Or Hike Rates If Inflation Worsens By Steven K. Beckner (MaceNews) – Although downside risks to the labor market have increased, so have upside risks to inflation and inflation expectations, and such a combination could create a difficult monetary policy dilemma, St. Louis Federal Reserve Bank President […]
FOMC Holds Funds Rate Steady, Participants Project 50bp of 2025 Rate Cuts
– Powell: ‘Not in Any Hurry to Move,’ ‘Well Positioned to Wait For Clarity’ – SEP Retains December Dots While Forecasting More Inflation, Less GDP Growth – Powell: Slower Pace of Balance Sheet Run-Off Has No Monetary Policy Import By Steven K. Beckner (MaceNews) – Faced with softer economic activity and uncertainty about the outlook […]