Central Banks

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Kansas City Federal Reserve President Esther George is out on the hustings (sorry speaking) in Oklahoma City. She is talking up the Fed, inflation and rate rises. All is good you can rely on the Fed is the message.

Bank of Japan maintained its monetary stimulus and a new dovish member voted against the decision, he was opposed to the CPI outlook.

No surprises from the Federal Reserve Wednesday the FOMC  left rates unchanged rates in the 1.00%-1.25% range and announced they will taper. The Fed will begin to unwind the $4.5 trillion balance sheet in October, as expected.

European Stability Mechanism (ESM) chief Klaus Regling is over in London pushing the latest wunder tool for crises, 10 years after we are still trying to solve the Greece crisis. Regling wants a ‘rainy day’ fund  to counter “asymmetric shocks in the euro zone.

ECB begins talks about ending its QE program with ‘bulk of decisions’ expected in October.

The ERO moved above $1.2030 as the ECB kept rates unchanged.

The Bank of Canada is raising its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The Reserve Bank of Australia has kept its cash rate on hold at a record low of 1.5%.

"Our judgement has been that it was not in the public interest to encourage an already highly-indebted household sector to borrow even more," RBA governor Philip Lowe said.

The US dollar had been ralling ahead of Janet Yellen's speech on financial stability at Jackson Hole, 100 pips in USDJPY and EURUSD. HEr speech brought nothing new and dramatic and the dolalr sold off immediatly.

Federal Reserve Bank of Dallas President Robert Kaplan speaking on Inflation and labor gave color to Fed economists study Getting a Jump on Inflation was released. How technology and the U.S. debt level is impeding inflation.

The FOMC minutes from the last meeting in July underscore just how confused the majority of the Fed is about what inflation is not higher. The US dollar reacted negatively. Most Fed officials also support a balance sheet move at the next FOMC meeting.

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