UPDATE: Fed Officials Take Cautious Approach to Further Rate Cuts As Late Jan FOMC Nears
– Harker Still Sees Rates Heading Lower; But Now ‘Appropriate To Take A Pause’ – Collins Calls for ‘Patient Approach to Policy’; Cuts Could Go Faster or Slower – Schmid: Funds Rate May Already Be ‘Neutral;’ Favors Further Balance Sheet Shrinkage – Bowman Urges ‘Caution;’ Monetary Policy Not As Restrictive As Some Think By Steven […]
ISM: US Services Sector Expands for 6th Straight Month in December on Robust Business Activity, with Boost from Seasonality, Preparation for Possible Trump Tariffs
–ISM Services Index at 54.1 in December Vs. 52.1 in November, Above Median Forecast 53.2–ISM’s Miller: Fed Likely to Pause in Rate Cuts in Face of 2nd Straight Quarterly Growth in Services Sector, Creeping Costs–Miller: Firms Concerned About Expected Drag from Trump Tariffs on Canadian Product Supply By Max Sato (MaceNews) – The U.S. services […]
Canadian Prime Minister Trudeau Steps Down amid Calls for His Resignation from Opposition, Own Party; Suspends Parliament Until March 24
–Trudeau Buys Time for Liberal Party to Pick Leader That Can Fend Off Conservatives’ Lead in Polls –Deputy Prime Minister Freeland, Former Bank of Canada Governor Carney Seen as Top Candidates but Party Support Uncertain By Max Sato (MaceNews) – Canadian Prime Minister Justin Trudeau announced Monday that he is stepping down as leader of […]
Fed Gov. Cook, Other Fed Officials Tread Carefully on Monetary Policy Outlook as 2025 Begins
By Steven K. Beckner (MaceNews) – Federal Reserve Governor Lisa Cook joined other Fed officials Monday in opening the new year with ambiguous comments about the outlook for monetary policy. Cook, like several colleagues, gave no indication she is eager to resume interest rate reductions in 2025, preferring to wait to see how inflation and […]
US December ISM Manufacturing Shows Signs of Pickup on Demand Side but Layoffs Continue Until Yearend
–ISM Manufacturing Index at 49.3 Vs. 48.4 in November, Well Above Median Forecast of 48.5–ISM’s Fiore: ‘We Are Concerned’ About Trump Tariff Threat as It Would Cause Supply Chain Confusion–Fiore: ISM Set to Rise Above Neutral Line of 50 in Q1, ‘If Not In January, Probably in February’–Fiore: Not Much Price Pressure; December CPI, PCE, […]
Japan’s Government Still Sees Modest Economic Recovery Despite Sluggish Consumption, Flat Real Wage Growth Amid Food-Led Inflation
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy’s “modest recovery” is set to continue despite sluggish consumer spending and flat real wage growth amid high costs for food and other necessities. In its monthly report for December released Friday by the Cabinet Office, the government said the economy is […]
BOJ Governor Ueda: Japan Economy on Track Toward Higher Interest Rates but Central Bank Needs More Confidence in Sustained Wage Hikes
–Ueda: Bank May Get Enough Data in March or April to Decide on Next Rate Hike By Max Sato (MaceNews) – Bank of Japan Governor Kazuo Ueda said Friday that the bank’s policymakers may receive clearer data and information in March or April that would allow them to decide confidently whether to go ahead with […]
FOMC Cuts Funds Rate 25 BP; Strongly Hints at Rate-Cutting Pause
– Powell: After 100 BP of Cuts, Policy Rate Closer to Neutrality – Powell: Now Appropriate to Ease More Cautiously, Slowly By Steven K. Beckner (MaceNews) – Three months after it began a decisive easing of monetary policy, the Fed took a tentative step on Wednesday toward slowing or perhaps interrupting that process. Much as […]
Preview: Close to 50/50 Chance in Bank of Japan Conducting Its 3rd Rate Hike of Current Cycle This Week as Policymakers Measure Risks
By Max Sato (MaceNews) – The chance of the Bank of Japan board hiking its policy interest rate by another 25 basis points to 0.5% this week is close to 50/50 as the bank’s policymakers ponder various risks amid growing domestic and global uncertainties. One thing is certain. The bank is staying the course of […]
BofA Global Research Fund Manager Survey: US Growth Optimism, Fed Rate Cut Expectations Drive ‘Super Bullish’ Sentiment at Year-end
–US Stock Allocation Highest on Record –Cash Allocation at All-Time Lows, Triggers Contrarian Sell Signal, BOA Says By Vicki Schmelzer NEW YORK (MaceNews) – U.S. growth optimism and Fed rate cut expectations drove the “super-bullish” risk sentiment seen at year-end, according to BofA Global Research’s monthly fund manager survey, released Tuesday. A net 7% of […]