The worst-case scenario of the staff of the Federal Reserve for the economy is no recovery until next year, according to minutes of the central bank's March 15 policy meeting released Wednesday. The staff told officials that there were two plausible scenarios for the U.S. economy grappling with the coronavirus. In one scenario, the U.S. economy would start to recover in the second half of the year. The more adverse scenario was that the economy entered a recession with no significant rebound until next year. Facing this uncertainty, Fed officials responded by slashing interest rates to...
The Reserve Bank of Australia came with the Minutes for the RBA Board's 1 October meeting. Members commenced their discussion of global economic conditions by noting that heightened policy uncertainty was affecting international trade and business investment. This had continued to be apparent in a range of indicators, including new export orders and investment intentions. Conditions in the manufacturing sector had remained subdued, partly because of ongoing US“China trade tensions. These tensions had led to a contraction in bilateral trade between the United States and China, which was...
European Central Bank officials were far apart on the elements of the monetary stimulus package that led to public acrimony after last months decision. The account of the Sept. 11-12 meeting showed some members of the Governing Council were ready to back an even deeper cut in interest rates in exchange for dropping the proposal to restart bond purchases. Others needed convincing about reducing rates at all because of concern about the possibility of increasingly adverse effects. œA number of reservations were expressed about individual elements of the proposed policy package,...
According to the minutes from the Federal Open Market Committee's (FOMC) September 17-18 monetary policy meeting, most policymakers believed that a 25 basis points rate cut was needed citing economic outlook, risk management and inflation objectives. The US Dollar Index largely ignored the statement and was last flat on the day at 99.12. Below are some other key take aways as reported by Reuters. "Several participants said statistical models on the likelihood of a recession in medium-term had increased notably in recent months." "Policymakers generally more concerned about risks...
While speaking to a group of local business and community leaders at the Federal Reserve Systems Fed Listens program, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, repeated that the Fed's strategy and tools have been, and remain, effective. "It's important for the Fed to keep inflation around the target so there is room to move monetary policy and to keep expectations anchored," Powell added. "Historically strong job market is benefitting low and moderate-income communities." Source : FXstreet
While responding to questions from the audience following his prepared speech at an event organised by the National Association of Business Economists in Denver, Federal Open Market Committee (FOMC) Chairman Jerome Powell said that there was no reason why the monetary expansion could not continue. With the initial market reaction, the US Dollar Index retreated from its session highs and was last up 0.16% on the day at 99.14. "The Fed will use rate cuts, forward guidance, and QE as appropriate," Powell added. "The short-term yield curve control is something that is worth looking...
Bank of England Governor Mark Carney said on Monday that the possibility of Britain leaving the European Union next month without a transition deal ranked as the riskiest Brexit scenario for the...
At its March monetary policy meeting on Tuesday, the Reserve Bank of Australia (RBA) cut its official cash rate (OCR) by 25bps to a record low of 0.50%, as they weighed in the coronavirus outbreak...