Seeing Broader Based Increases in Inflation – NY Fed Williams

The New York Fed president John Williams, hwo is a voting member continued with his hawkish tilt of late. His comments roiled financial markets somewhat with selling in the more speculative names such as those in Russell 2000 index. He also focused on familiar themes saying supply constraints are a major factor on the labor market and supply chain bottlenecks. “We definitely have seen a pickup in underlying inflation in the U.S. that we’ll be studying carefully,” Williams said during a virtual … Continue reading “Seeing Broader Based Increases in Inflation – NY Fed Williams”

US Jobless Claims Hit New Pandemic Low

Americans filing for unemployment benefits fell to a new pandemic low as the labor market continues to slowly recover from the coronavirus economic burdens. Initial claims by 1K to 268K in the week ended November 13th. Demand for workers remains strong. However claims remain above the 2019 weekly average of 218K.  US initial jobless claims and continuing claims for current week Initial jobless claims 12 Nov 268K vs 260K estimate. Prior week 267k revised to 269 This is the lowest … Continue reading “US Jobless Claims Hit New Pandemic Low”

President Biden ‘Blame Game’ Targets US Oil Companies for Illegal Conduct

President Biden in his latest shift of finding blame and solutions for high oil prices on Wednesday sent a letter to the FTC to consider whether “illegal conduct” by large oil and gas companies is pushing up gasoline prices for American consumers. The F.T.C., does have the power to break up large industry players but in reality is unlikely to affect gasoline prices materially any time soon. The move was met with derision by almost anyone around the industry, from … Continue reading “President Biden ‘Blame Game’ Targets US Oil Companies for Illegal Conduct”

Hawkish Bullard Cays Core PCE Is Quite High

Fed Governor speaking on BBGTV said US Core PCE Is “Quite High” and added that the Fed should take towards a more hawkish policy in the next couple of meetings. He said 3%-4% Rate `Is Not My Base Case’ Feds Bullard Speech Highlights Core PCE is quite high Fed should take towards a more hawkish policy in the next couple of meetings Markets are past the taper tantrum. The Fed could move further faster Fed taper increased to $30 billion … Continue reading “Hawkish Bullard Cays Core PCE Is Quite High”

India Buys Russian S-400 Surface to Air Missiles Ignoring US

India has begun receiving Russian S-400 Triumf missile systems ignoring the threat of what many see as an impotent US. with sanction threats. India sees them as a boost to New Delhi’s air defense capabilities with the threats along the borders with China and Pakistan. Significantly the delivery is happening ahead of Russian President Vladimir Putin’s visit to India for an annual summit with India’s Prime Minister Narendra Modi next month. Source: NikkeiAsia From The TradersCommunity News Desk

Banco de México Raises Rates Again With Inflation Risk To Mexican Economy

The Mexican Central Bank, Banco de México raised interest rates by 25 basis points to 5.00% with the bank saying headline and core inflation forecasts were revised upwards. Last month the Banco Central do Brasil​ hiked its benchmark interest rate by 150bp to 7.75% The Mexico central bank Governing Board increased the target for the overnight interbank interest rate by 25 basis points to 5.00%. The vote was not unanimous, voting in favor of the decision were Alejandro Díaz de … Continue reading “Banco de México Raises Rates Again With Inflation Risk To Mexican Economy”

Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate

The Bank of England MPC at it’s November meeting voted 7-2 (Ramsden and Saunders dissented)to maintain Bank Rate at 0.1%. The Committee voted 6-3 (Ramsden, Saunders, Mann dissented) to maintain corporate bond purchases at £20 billion and government bond purchases at £875.   Highlights: Bank of England announced  September 23 2021 monetary policy decision Unchanged at prior 0.10% Official bank rate votes 0-0-9 vs 0-0-9 expected Bank rate vote 7-2 (Ramsden and Saunders dissented) Gilts Asset purchase target £875 bn … Continue reading “Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate”

Federal Reserve Leaves Rates Unchanged, Begins Taper at $15Billion per Month as Expected

The Federal Reserve kept rates unchanged at their November meeting, Cut in pace of Treasuries $10B/month as expected, Cut in pace of MBS $5B/month as expected. Inflation is elevated, largely reflecting factors that are expected to be transitory

ECB Leaves Rates Unchanged, APP will continue at a monthly pace of €20 billion

ECB left rates unchanged as expected in October. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB again judges that favourable financing conditions can be maintained with a moderately lower pace of PEPP purchases