Preview: Bank of Canada Seen Keeping Policy Rate at Nearly Neutral 2.75%, Staying Cautious Until Trade War Fog Clears Up
By Max Sato (MaceNews) – The Bank of Canada on Wednesday is largely expected to maintain its policy interest rate – the target for overnight lending rates – at a nearly neutral level of 2.75%, pausing for the second straight meeting until bank officials can figure out exactly how trade conflicts are hurting growth and […]
Fed Officials Still Pursuing Monetary Policy ‘Patience’ in Face of Trade Uncertainty
– Some Talk of Eventual Rate Cuts; Others More Reticent By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to express caution about changing monetary policy from the “moderately restrictive” stance it has been in since the Fed completed 100 basis points worth of short-term interest rate cuts in December. President […]
US ISM Manufacturing Stays in Contraction in May as Trade Rows Keep Outlook Uncertain, Causing Supply Chain Chaos
–ISM Manufacturing Index at 48.5 Vs. 48.7 in April, Below Consensus at 49.1–ISM New Chair Spence: Agree with Predecessor Fiore that US Economy Not Yet in Recession but PMI Moving in That Direction–Spence: Manufacturing Sector Will Continue Struggling Until There is More Certainty Over US Trade Policy–Spence: Layoffs Main Option for Firms as They Reduce […]
Fed Officials Still Hopeful About Economy, In No Rush to Cut Interest Rates
– Divergent Views Have Emerged But for Now Officials United on Need For Patience By Steven K. Beckner (MaceNews) – As the Federal Reserve approached its mid-year monetary policy meeting, Fed officials have given few signs this week that they are prepared to change their “moderately restrictive” interest rate settings any time soon. While officials […]
Japan Keeps Gradual Economic Recovery Outlook Against Global Trade War, Domestic Inflation Headwinds
By Max Sato (MaceNews) – Japan’s government continued to put on a brave face on the global trade war and politically explosive food price inflation, maintaining its cautiously optimistic domestic economic outlook for the ninth straight month, saying the economy is expected stay on a “modest recovery” track. In its monthly report for May released […]
Fed Officials Continue to Push Off Rate Cuts As They Await ‘Clarity’
– Musalem, Others See No Rush to Change Monetary Policy By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to speak in a patient, cautious vein, strongly suggesting they see no need to rush to ease monetary policy in a climate of heightened uncertainty. Fed officials have largely echoed Fed Chair […]
FOMC Holds Funds Rate Steady as Powell Sees ‘No Hurry’ To Ease Policy
– Sees Risks Up for Both Higher Unemployment And Higher Inflation – Powell Says FOMC May Have to Make Tough Policy Choice but No Need Now By Steven K. Beckner (MaceNews) – Facing heightened uncertainty about how the Trump administration’s trade and other policies will affect the economy, Federal Reserve policymakers once again marked time […]
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 […]
ISM: US Services Sector Expands in April for 10th Straight Month but Trump Tariffs Keep Outlook Uncertain
–ISM Services Index Picks Up to 51.6 Vs. 50.8 in March, Above Consensus (50.2)–Slight Pickup Led by 3 Out of 4 Key Subindexes: New Orders, Employment, Supplier Deliveries (Slower Deliveries)–Employment Subindex in Contraction for 2 Months in a Row–ISM’s Miller: More Industries Mention Trump Tariff Impact on Costs–Miller: Must Watch for Profits, Survival of Smaller […]