Three Fed Presidents Defend FOMC’s 50 BP Rate Cut; Vague About Future Cuts
– Bostic: Lower Inflation, Bigger Job Risk Justified Big Cut but Must Be ‘Patient’ – Goolsbee Foresees ‘Many More Rate Cuts’; FFR Hundreds of Basis Points Over Neutral – Kashkari: Balance of Risks Has Shifted From Inflation to Unemployment By Steven K. Beckner (MaceNews) – Three Federal Reserve Bank presidents said Monday they are prepared […]
FOMC Cuts Federal Funds Rate 50 Basis Points, Says Next Steps To Be Decided Meeting by Meeting
– Fed Officials Project 4.4% By End 2024; 3.4% End 2025; 2.9% End 2026 – Powell Says FOMC ‘In No Rush’ To ‘Recalibrate’ to ‘More Neutral’ Stance – Longer Run ‘Neutral’ Funds Rate Raised Further to 2.9% By Steven K. Beckner (MaceNews) – The Federal Reserve undertook a major shift in the direction of monetary […]
Fed Officials Agree It’s Time to Start Lowering Federal Funds Rate
– But Williams, Waller Won’t Say Size or Pace of Rate Cuts By Steven K. Beckner (MaceNews) – Two top Federal Reserve policy-makers strongly signaled Friday that the Fed will be cutting short-term interest rates for the first time since March 2020 when its rate-setting Federal Open Market Committee meets in mid-September. However, neither New […]
Japan July Overall Household Spending Up Just 0.1% Y/Y, Core Reading Dips 0.8%; Air Conditioner Demand Strong but Too Hot to Stay Outdoors
–High Wage Hikes amid Labor Shortages Lead to 3rd Straight Rise in Real Average Household Income–Real Wages Up 0.4% Y/Y in July After Marking 1st Rise in 27 Months in June By Max Sato (MaceNews) – Japan’s real household spending posted its first year-over-year rise in three months in July but with a sluggish undertone […]
Heat Wave Boosts Japanese Consumer Inflation in July, Hitting Many Households as Government Ends Utility Subsidies
–Retail Sales Up on Seasonal Demand but Somewhat Slower as It is Dangerous to Stay Outdoors for Long –Factory Output Rebounds, Government Upgrades View –Unemployment Rate Up on Surge in Quits for Better Positions Amid Widespread Labor Shortages By Max Sato (MaceNews) – The killer heat wave is wreaking havoc across Japan, claiming many lives […]
Japan Government Slightly Upgrades Its View on Economic Recovery after BOJ Conducts 2nd Rate Hike in July
By Max Sato (MaceNews) – Japan’s government upgraded its overall economic assessment for the first time in six months, noting consumer spending is supported by wage hikes and temporary income tax credits, but the change in wording is subtle and it continues to say the economy is recovering “moderately.” In its monthly report for August […]
Fed’s Powell Declares ‘The Time Has Come’ to Lower Federal Funds Rate
– Leaves Timing and Amount of Rate Cuts In Doubt – Says Inflation Risks Receding While Employment Risks Rising. By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell left no doubt Friday that he and his fellow monetary policymakers will begin lowering interest rates next month, but was far less clear about how […]
Japan July Core CPI Annual Rate on Gradual Uptrend at 2.7% Vs. 2.6% in June as Government Ends 18-Month Utility Subsidies, Heat Wave Boosts Air Conditioner Price
–Total CPI Y/Y Rise Steady at 2.8%; Fresh Food Markups Ease After Recent Spike–Core-Core CPI (Ex-Fresh Food, Energy) Up 1.9% Vs. 2.2% amid Easing Pressure from Processed Food Costs By Max Sato (MaceNews) – Consumer inflation in Japan continued accelerating slightly in the core reading in July after the government ended 18-month long utility subsidies […]
Japan July Export Rise Led by Semiconductors, Autos from US, Asia, Offsetting Slow Shipments to Europe; Trade Deficit Wider Than Expected
–Imports Surge on Drugs, Computers, Crude Oil as Relatively Weak Yen Keeps Costs High–Exports to China Post 8th Straight Y/Y Rise Following Last Year’s Slump–Exports to US Remain Robust; Those to EU Mark 4th Straight Y/Y Decline By Max Sato (MaceNews) –Japanese export values rose 10.3% for the eighth straight year-over-year increase in July, led […]
Japan June Core Machine Orders Post 1st M/M Rise in 3 Months as Computer Demand from Various Industries Remains Solid
–Q2 Core Orders -0.2% Q/Q, Easily Beating -1.6% Official Forecast as Largely Expected–Q3 Core Orders Seen Up Modest 0.2% Q/Q, Indicating Uncertainty over Global Growth; June Core Orders Mark 1st Y/Y Drop in 4 Months–Cabinet Office Keeps View After Last Month’s Downgrade: Pickup in Machine Orders Pausing By Max Sato (MaceNews) – Japanese core machinery […]