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Central Bank

Fed Uncertain on Extent of Future Rate Cuts: Schmid

Federal Reserve interest rate cuts are a sign of growing confidence that inflation is heading towards the central bank’s 2% target, but it remains unclear how far rates can fall, Kansas City Fed President Jeffrey Schmid said on Tuesday in his remarks prepared for delivery to the Omaha Chamber

BOJ Governor Sees Increased Likelihood of Wage-Driven Inflation

Bank of Japan (BOJ) Governor Kazuo Ueda expressed optimism on Monday about Japan's progress toward achieving sustained inflation driven by rising wages, signaling that conditions for future interest rate hikes are gradually improving, as reported by Reuters. In a speech to business leaders in Nagoya, Ueda stated, "

Global Stocks Tumble as Fed Signals Slower Rate Cuts

Global stock markets experienced their most significant weekly decline in two months, while US Treasury yields hit a five-and-a-half-month high on Friday, as economic data and statements from Federal Reserve officials indicated a less aggressive approach to interest rate cuts, reports Reuters. This shift in expectations followed comments from Fed

US Disinflation Stalls, Highlighting Tough Road Ahead

US inflation likely remained stagnant in October, highlighting the uneven pace of easing price pressures as the Federal Reserve aims to return inflation to its target, reports Bloomberg. The core consumer price index (CPI), which excludes food and energy, is projected to have risen at the same pace on both

BOJ Policymakers Divided on Pace of Rate Hike

The Bank of Japan (BOJ) remains divided on the appropriate timing for raising interest rates, according to a summary of opinions from its October policy meeting released on Monday, reports Reuters. Several board members expressed concern about the potential for renewed market volatility if rates are raised too quickly. They

Fed Cuts Rates But Trump's Re-Election Casts Shadow Over Future Policy

The Federal Reserve on Thursday lowered interest rates by a quarter percentage point, marking the second consecutive rate cut as the central bank continues to support the US economy. However, the re-election of Donald Trump, known for his criticism of the Fed and his potential to influence monetary policy, has

BOJ Expected to Keep Rates Steady

The Bank of Japan (BOJ) is set to maintain its ultra-low interest rate policy at its upcoming meeting on October 30-31, but may signal a less dovish stance, reports Reuters. This shift could be driven by receding fears of a US recession and the need to prevent further yen depreciation.

Delayed Fed Rate Cuts Raise Credit Risks and Spillover Concerns, S&P Global Warns

S&P Global has pushed back its forecast for the first Federal Reserve rate cut to December 2024, citing persistent inflation and unexpectedly strong economic data. This delay in easing monetary policy raises concerns about elevated credit risks in the US and potential spillover effects on other economies, particularly
Delayed Fed Rate Cuts Raise Credit Risks and Spillover Concerns, S&P Global Warns

Jobs Report Fuels Market Optimism: UBS

The weaker-than-expected April jobs report has sparked optimism for a soft landing in the US economy, prompting UBS to reiterate its positive outlook for quality bonds and quality stocks. Friday's report showed a smaller-than-anticipated increase in employment growth, alongside moderating wage growth and a slight uptick in the

Advanced Economies Navigate Away from Immediate Stagflation Threat: BNY Mellon

Despite concerns over recent economic data, advanced economies appear to be moving away from the immediate threat of stagflation, according to a new report by BNY Mellon. The report highlights positive trends in real wage growth and productivity, suggesting a more favorable economic environment compared to the previous year. The