Bank of Canada Cuts Policy Rate by Another Jumbo 50 Basis Points as Expected; Governor Sees ‘More Gradual’ Approach Toward Future Rate Cuts
–BoC Repeats: Will Take Policy Decisions One Meeting at a Time–Governor Macklem: Discussed Both Options of 25 and 50 Basis Point Cuts amid Mixed Economic Data–Macklem: Further Rate Cuts to Be More Gradual Than 2 Consecutive 50-Bps Cuts; Deliberately ‘Pretty Wide Zone’ By Max Sato (MaceNews) – The Bank of Canada on Wednesday lowered its […]
Preview: Bank of Canada Seen Set to Trim Key Interest Rate by Another 50 Basis Points to 3.25% Wednesday, Likely to Signal More Cuts Coming to Prop Up Economy
By Max Sato (MaceNews) – The Bank of Canada is widely expected to slash its policy interest rate – the target for overnight lending rates – by yet another large-sized 50 basis points to 3.25% on Wednesday to safeguard the economy from the chilling effects of its own 17-month rate hike campaign through mid-2023 aimed […]
Cleveland Fed’s Hammack: FOMC Is Getting Close To Needing to Slow Rate Cuts
– Need to Keep Monetary Policy ‘Modestly Restrictive’ To Reduce Still High Inflation By Steven K. Beckner (MaceNews) – The Federal Reserve is approaching a point where it should “slow the pace” of interest rate reductions, new Cleveland Federal Reserve Bank President Beth Hammack said Friday. Hammack, a voting member of the Fed’s rate-setting Federal […]
Powell: Fed Can Afford to Be ‘More Cautious’ About Easing Toward ‘Neutral’
– Cites Strong Growth; Low Unemployment; ‘Higher’ Inflation By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell strongly suggested Wednesday that he favors a gradual, careful approach to further interest rate reductions. Powell said the Fed is in the process of lowering short-term interest rates to a “more neutral” level but said the […]
ISM: US Services Sector Expands for 5th Straight Month in November but Posts Sharp Slowdown on Trump Tariff Concerns, Slow Fed Rate Cuts
–ISM Services Index at 3-Month Low of 52.1 vs. 56.0 in October, Well Below Median Forecast 55.5–ISM’s Miller: Trump Tariff Complications Not Accelerating Ongoing Move Away from China–Miller: Higher Costs of Sourcing from Mexico Likely to Be Resolved Via North American Trade Pact As in Past By Max Sato (MaceNews) – Business activity in the […]
Fed Gov. Waller Leans toward Dec. 18 Rate Cut but Allows for Pause
By Steven K. Beckner (MaceNews) – Federal Reserve Governor Christopher Waller said Monday that he is “leaning” toward supporting a quarter percentage point cut in short-term interest rates when the Fed holds its mid-December monetary policy meeting but opened the door to a pause in the monetary easing process if incoming economic data so warrant. […]
US November ISM Manufacturing in Contraction for 8th Straight Month but Shows Signs of Pickup in early 2025; Firms Look at Bright Side of Potentially Business Friendly New Administration
–ISM Manufacturing Index at 48.4 vs. 46.5 in October, Well above Median Forecast of 47.6–ISM’s Fiore: Concerns about Inflationary Fiscal Policy Not Going Away but Optimism over Trump Plans Kicks in–ISM’s Fiore: US Economy on Soft-Landing Course; Still Believes ISM Index Likely to Pick Up Above Neutral Line of 50 in Q1 of 2025 By […]
FOMC Minutes Don’t Rule Out or Guarantee December Rate Cut
WASHINGTON (MaceNews) – The minutes of the Federal Open Market Committee meeting earlier this month, published Tuesday, were faithfully in line with Fed Chair Powell’s post-meeting comments, seeing the likelihood of another rate cut in December as in November if the economy and inflation remain on the current path. The portion of the minutes devoted […]
Japan Still Sees Modest Economic Recovery but Warns It Now Needs to Watch Future US Policy amid Headwinds of Inflation, Middle East Tensions, Weak Yen
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy’s “modest recovery” is set to continue thanks to wage hikes amid widespread labor shortages, but urged a close watch on the future U.S. government policy as well as lingering high costs for necessities, geopolitical risks and the weak yen. In its […]
Fed Officials Keep Speaking Cautiously About Cutting Interest Rates Further
– Cook: More Rate Cuts ‘Likely’ but Size, Timing to Depend on Data – Schmid: “It Remains to Be Seen’ How Much Lower Rates Should Go By Steven K. Beckner (MaceNews) – Federal Reserve policymakers have continued this week to signal caution on further interest rate reductions. When the Fed’s policymaking Federal Open Market Committee […]