Bank of Canada Leaves Rates Unchanged At 0.25% As Unexpected

Bank of Canada left rates unchanged at 0.25% in line with forecasts and maintained its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Last meeting the BoC surprised by ending the QE bond buying program from $2 billion per week to nil, it was expected to cut to $1billion a week. The Bank of Canada held the overnight rate at 1/4 per cent. The Bank Rate is correspondingly 1/2 per cent … Continue reading “Bank of Canada Leaves Rates Unchanged At 0.25% As Unexpected”

RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly

The Reserve Bank of Australia held interest rates at an all-time low on Tuesday to just 0.1% as widely expected. The RBA said the economy is expected to return to pre-Delta path in H1 2022. Leading indicators point to a strong recovery in labor market. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% Omicron variant is new source of uncertainty Household consumption is rebounding strongly The outlook for business investment has improved Economy expected to return to … Continue reading “RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly”

Key Treasury Bond Auctions Along Yield Curve Next Week To Test Investor Resolve

Following the turmoil in the market this week and last from the new B.1.1.529 variant now known as Omicron has scientists concerned for two primary reasons. Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. The U.S. Treasury has announced that next week they will auction $54 billion three year notes $36 … Continue reading “Key Treasury Bond Auctions Along Yield Curve Next Week To Test Investor Resolve”

Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments

Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. He was answering questions in today’s testimony at the joint Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. The Fed Chair moved his bias toward the hawkish side which surprised many with the new … Continue reading “Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments”

Fed Chair Powell says Factors Pushing Inflation Upward Will Linger Into Next Year

Federal Reserve System Chairman Jerome Powel released his prepared testimony ahead of tomorrow’s 10:00 a.m. Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. Headlines via Reuters Factors pushing inflation upward will linger well into next year  Inflation running well above 2% goal, pushed up by pandemic-related supply and demand imbalances Continue to expect inflation will move down significantly over the next year We will use our tools to support economy and strong … Continue reading “Fed Chair Powell says Factors Pushing Inflation Upward Will Linger Into Next Year”

ECB Stresses Current Inflation Hump Shaped Not Stagflation

ECB accounts of its October monetary policy meeting addressed a lot of key questions. The big one, is inflation transitory and are we headed for stagflation? The Bank recalled that stagflation experiences in the 1970s occurred in a different environment, in which indexation allowed wages to react to energy prices. The shortage of critical supplies including energy and other commodities has “seen market-based measures of inflation compensation in the euro area had surged to their highest levels in over seven years, … Continue reading “ECB Stresses Current Inflation Hump Shaped Not Stagflation”

Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected

The Reserve Bank of New Zealand raised its Official Cash Rate from 0.50% to 0.75% as expected as capacity pressures have continued to tighten. RBNZ says headline CPI inflation is expected to measure above 5 percent. Reserve Bank of New Zealand raise its Official Cash Rate from 0.50% to 0.75% The rise in the official cash rate comes after last month’s which was the first since 2014 when the OCR hit a post-GFC peak of 3.5 per cent. RBNZ projections … Continue reading “Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected”

Jerome Powell Re-nominated Fed Chair With Lael Brainard Vice-Chair

In what the Press had us believe was a close race The White House took the sensible route and nominated Jerome Powell for a second four-year term, according to a statement. PredictIt had Powell at a 79% favorite. Lael Brainard will be nominated as vice-chair replacing Richard Clarida. She was expected to get vice-chair of supervision if not chair. The White House said both Powell and Brainard share the administration’s focus on ensuring that economic growth broadly benefits all workers … Continue reading “Jerome Powell Re-nominated Fed Chair With Lael Brainard Vice-Chair”

Fed’s Waller Wants a Faster Taper With Concern If Inflation Embedded Into Wage Demands

The Federal Reserve is continuing to voice it’s concern about inflation, wages and disparities between those who benefited from asset inflation and those who have been hurt by it. Fed Governor Christopher Waller said on Friday the rapid improving job market market and deteriorating inflation data have pushed him towards favoring a faster pace of tapering and more rapid removal of accommodation. “The rapid improvement in the labor market and the deteriorating inflation data have pushed me towards favoring a … Continue reading “Fed’s Waller Wants a Faster Taper With Concern If Inflation Embedded Into Wage Demands”

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”