The Fed Fights the Fed: WSJ
Policy makers want to convince investors that smaller rate increases won’t be a prelude to rate cuts. Federal Reserve Chair Jerome Powell said Wednesday the central bank will raise interest rates a quarter-percentage-point. Powell said more increases will likely be needed to continue lowering inflation. Source link
Oil prices climb as dollar slumps, OPEC+ keeps output cut policy
By Laura Sanicola and Muyu Xu (Reuters) -Oil prices rebounded on Thursday after tumbling in the previous session as a weaker dollar brought back some appetite for risk assets and the OPEC+ decision to roll over an output cut helped ease oversupply concerns. Brent crude futures rose […]
FOMC responses – inflation still high, more +25bp hikes ahead,
A couple of analyst snippets in response to Wednessday’s Federal Open Market Committee (FOMC) and Powell. BMO: there are more tightening moves to be realized this cycle still too soon to look for the Fed to shift to an on-hold stance inflation … eased somewhat, but remains elevated the phrase “pace of future increases” transitioned […]
US Dollar bears celebrate Fed’s dovishness
What you need to take care of on Thursday, February 2: The US Dollar plummeted following the US Federal Reserve’s monetary policy decision. The central bank decided to hike its benchmark rate by 25 basis points (bps) as widely anticipated by market players. The statement showed that policymakers changed the wording on inflation, noting that […]
Persistent EU Inflation Boosts Odds of a Moderately Hawkish ECB on Thursday
The Fed meeting in December, the Minutes of the meeting, incoming January US soft and hard data – all of them indicate that the Fed may deliver the penultimate rate hike today and implicitly announce the end of the tightening cycle at the next meeting. However, core inflation in the US is still high and […]
Federal Reserve chairman Jerome Powell to stress inflation fight far from over
WASHINGTON (AP) — Inflation is cooling, and parts of the economy appear to be weakening. But Chair Jerome Powell is likely Wednesday to underscore that the Federal Reserve’s primary focus remains the need to fight surging prices with still-higher interest rates.With financial markets anticipating that the Fed will stop raising rates soon and possibly even […]
“Key panel urges BOJ to make 2% inflation target long-term goal”
ICYMI, a Reuters report with further detail on the news from yesterday: Under strong political pressure to beat deflation, the BOJ signed a policy accord with the government in 2013 and committed to achieving 2% inflation “at the earliest date possible.” The Reuters report is here: Bank of Japan Governor Kuroda will be leaving the […]
Banks Brace for More Consumers to Fall Behind on Their Loans
Delinquencies are rising, in some cases surpassing prepandemic levels, prompting banks to add to their rainy-day funds. Source link
Fed Debates Whether Wages or Low Unemployment Will Drive Inflation
Fed officials face a fork in the road when forecasting inflation: Focus on moderating wage and price trends or persistently low unemployment? Source link
EUR/USD Tests 1.0900 – ECB Rate Decision, Inflation and Growth Data Ahead
EUR/USD Price, Chart, and Analysis German Q4 GDP misses expectations and turns negative. EUR/USD is back above 1.0900 ahead of major data and events. Recommended by Nick Cawley Get Your Free EUR Forecast Most Read: EUR/USD Technical Outlook: Minor Setback on the Cards? German gross domestic product (GDP) turned negative in the fourth quarter of […]