Bank of England Lifts Rates; Sends Hawkish Signals
— Decision was a “close call,” says governor, as four members argue for a steeper increase LONDON (MaceNews) – The Bank of England lifted interest rates for the second straight meeting — the first consecutive hikes since 2004 —but surprised the markets with a decidedly hawkish outlook, according to minutes of the February Monetary Policy Committee […]
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) […]
Japan December Unemployment Dips; Fewer Workers Quit To Look For Better Jobs
— Job Cuts on Year Linger in Industries Hit by Supply Delays, Covid Restrictions — Japan 2021 Jobless Rate Stays at 2.8%, Pace of Job Cuts Decelerates By Max Sato (MaceNews) – The pandemic is keeping the recovery in the Japanese labor market slow as some sectors continued to trim payrolls from year-earlier levels, but […]
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 […]
Analysis: Italy’s Government Weaker After Tricky Presidential Vote; 2023 Vote Outcome Uncertain – Sources
By Silvia Marchetti ROME (MaceNews) – The “forced” reappointment of Sergio Mattarella as Italy’s head of state despite his initial unavailability for a second term marks a further weakening of the government and its reformatory push as parties come to terms with their vulnerabilities, according to Italian party sources. “Party talks have failed in striking […]
Japan METI Unintentionally Posts +1.4% M/M Dec Retail Sales Hours Early
— METI Official: Data Embargoed on New Internal Computer System— METI Official: May Be Due To Human Error But Cannot Confirm Yet By Max Sato (MaceNews) – Japanese retail sales rose modestly, posting the third straight year-on-year rise in December, when consumers appeared to have braved the early stage of the Omicron storm during the […]
<strong><br>FOMC Tees Up March Rate Hike Now That U.S. At ‘Maximum Employment’</strong>
– Powell Sees ‘Substantial’ Balance Sheet Shrinkage After Rate Hikes Begin – Powell Says ‘Couple’ More Discussions Needed on Balance Sheet Reduction Strategy – Powell Implies Rate Hikes May be More Aggressive Given High Inflation, Tight Labor By Steven K. Beckner (MaceNews) – The Federal Reserve took another giant step toward removing some monetary accommodation […]
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 […]
Bank of Canada Keeps Record-Low Rate But Ends Forward Guidance on Easing
— BOC’s Macklem: Taking Deliberate Steps Toward Higher Interest Rates— BOC To Keep Govt Bonds on Its Balance Sheet Until It Starts Raising Rates— BOC Revises Up 2022 CPI Forecast To 4.2% From 3.4%; 2023 Unchanged at 2.3%— BOC Lowers 2022 GDP Forecast to 4.0% From 4.3%, 2023 To 3.5% Vs 3.7% By Max Sato […]
Bank of Canada Policy Statement – Holds Rates Steady, Ends Extraordinary Forward Guidance on Policy Rate
(MaceNews) – The following is the text of Wednesday’s Bank of Canada policy announcement: The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ %, with the Bank Rate at ½ % and the deposit rate at ¼ %. With overall economic slack now absorbed, the […]