Analysis: Japan PM Kishida to Face Bad Economic News After Omicron Storm
–Economists Revise Down Forecasts to Show Slight Contraction in 1Q By Max Sato (MaceNews) – Japanese Prime Minister Fumio Kishida is likely to face bad news on the economic front after barely surviving voter frustration over public health restrictions imposed about two months ago aimed at fighting a surge in Covid infections caused by the […]
FOMC Lifts Off from Zero with 25bp Rate Hike; 6 More Projected for 2022
– Powell Says FOMC May Move Faster If Needed To Reduce Inflation – Says Funds Rate Could Go ‘Beyond’ Downwardly Revised ‘Neutral’ Rate – Balance Sheet Reduction Plan Could Be Announced As Soon As May Meeting By Steven K. Beckner (MaceNews) – After holding short-term interest rates near zero for two years to support a […]
FOMC: Qtr Point Hike As Expected; Few Specifics on Future Action
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday fulfilled expectations for a quarter-point fed funds rate hike, the first such since 2018, accompanied by a pledged to begin pulling back Treasury and Agency securities holdings “at a coming meeting.” The text follows: Indicators of economic activity and employment have continued to strengthen. Job gains […]
ECB Cuts Asset Purchases, Could Exit QE in Q3
— Rate Hikes to Come ‘Some Time After’ Asset Purchases End LONDON (MaceNews) – The European Central Bank surprised forecasters, announcing a reduction in asset purchases over the second quarter and raising the possibility of a rate hike this year, following the conclusion of Thursday’s governing council meeting. Purchases under the long-running Asset Purchase Programme will […]
Japan Q4 GDP Growth Unexpectedly Revised Down on Softer Consumption 
— Capex Shows Slight Downward Revision Vs. Projected Upward Revision — Public Works Revised Down As Expected, Its Negative Contribution Unrevised — Q1 GDP Growth Seen Slower Amid Covid Restrictions, Rising Costs, Ukraine By Max Sato (MaceNews) – Japan’s economic rebound in the October-December quarter was unexpectedly revised down slightly as consumer spending turned out […]
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 […]