Updates – Monetary Policy

Senior Fed Economist Says Odds of Avoiding Recession Have Risen

November 18th, 2022|

Matthew Boesler BloombergNovember 18, 2022 Latest data raise soft-landing chances slightly, Raffo says Minneapolis Fed’s director of research speaks in interview (Bloomberg) A senior Federal Reserve economist said the latest data on consumer spending, wages and prices suggest the central bank’s chances of achieving a soft landing for the US economy have improved a bit

US REACT: Factory Output Flags Lower Goods Prices Ahead

November 16th, 2022|

Andrew Husby BloombergNovember 16, 2022 (Bloomberg Economics) --OUR TAKE: October industrial production figures add to a growing ensemble of data flagging softening core-goods inflation ahead, a plus for Fed officials looking to step down the pace of rate hikes. That said, with a tight labor market and robust services-price inflation accounting for the bulk of

Fed seen slowing rate hike pace as inflation eases

November 10th, 2022|

Ann Saphir ReutersNovember 10, 2022 A larger than expected drop in consumer inflation last month will likely prompt the Federal Reserve to pare down future interest rate increases as the impact of its swift monetary tightening this year begins to take hold. October data published Thursday by the Labor Department showed key items like rents increasing

Reasons Are Adding Up for Optimism on Inflation

November 7th, 2022|

John Authers BloombergNovember 6, 2022 Reasons to Be CheerfulWelcome to Inflation Week. In the US, the week ahead will be punctuated by widespread school closures on Tuesday for midterm elections, by what could well be another drawn-out vote-counting process, and by Veterans Day (Armistice Day in the UK) on Friday. The big moment for financial

Explain to Me Again How Fed Rate Hikes Bring Down Rent Inflation

October 31st, 2022|

BloombergOctober 29,2022 One of the biggest components of rising CPI is rent or owner’s equivalent rent on a year-over-year basis. As the Fed prepares to hike rates yet again this week to tame inflation, it’s worth asking whether its actions will have any impact on rents.The chart below suggests it won’t. In fact in 2001

Strong Dollar Seen Hurting US Outlook and Even Tilting Fed Path

October 31st, 2022|

Steve Matthews and Kyungjin Yoo BloombergOctober 29,2022 Economists expect impact on Fed policy after greenback’s surge Fed can’t escape being central banker to world, economists say A strong dollar is likely to weigh negatively on the US economic outlook and could alter how high the Federal Reserve ultimately raises interest rates, economists surveyed by Bloomberg

Fed’s rate debate shifts to how, and when, to slow down

October 27th, 2022|

Howard Schneider ReutersOctober 21,2022 The Federal Reserve, set to approve another large interest rate increase early next month, is shifting to a debate over how much higher it can safely push borrowing costs and how and when to slow the pace of future increases. The U.S. central bank is likely to provide a signal at

Treasury Buybacks Are Coming, Though the Details Are Murky

October 27th, 2022|

Alexandra Harris BloombergOctober 27,2022 Program may help market functioning, but is not a cure-all Facility helps correct supply-demand imbalances, analysts say The Treasury is likely to move ahead with plans to buy back securities from investors to improve market functioning, though it’s still unclear what the primary objectives of such a program should be and

Treasuries Extend Rally as Investors Go All In on Dovish Pivot

October 27th, 2022|

Alyce Andres BloombergOctober 27,2022 The Treasury market’s rally off Friday’s low continues for a fourth day. That bodes well for a continued extension of this tactical rally. Investors are going all in on the potential for the Fed to deliver a dovish pivot after soft details in the US 3Q GDP report and expectations for significant slowing in the European growth

Go to Top