Federal Reserve (Fed) Bank of Dallas President Lorie Logan mused about making key policy adjustments at the Fed on Monday, stressing the need for more effective policy communication.The US has more room to reduce reserves.Responding to banks' increased short-run demand for reserves is a recipe for an ever-expanding central bank balance sheet.As reserve levels drop, preferable for the Fed to seek to meet lower long-run bank demand for reserves rather than the higher short-run demand.Fed balance sheet should hold primarily treasuries in the long run.I was encouraged to see the use of the...
The Nikkei 225 index fell 0.6% to below 39,200 while the broader Topix index fell 0.4% to 2,730 on Friday, paring gains from earlier in the week and tracking losses on Wall Street overnight as a major rally in U.S. stocks lost momentum. Investors are also gearing up for the crucial U.S. monthly jobs report. In Japan, data showed that inflation-adjusted real wages were unchanged in October from a year earlier, an improvement from a 0.4% decline in September and 0.8% in August. That supported expectations for a potential interest rate hike by the Bank of Japan this month, although...
Asia-Pacific markets open mostly lower Friday after Wall Street saw the Dow Jones Industrial Average drop more than 200 points and S&P 500 retreat from a record high. Traders in Asia assessed household spending data out of Japan. Spending grew 2.9% in October compared to the previous month, beating expectations of a 0.4% growth by economists polled by Reuters. Year-over-year, household spending fell 1.3% in October, less than an expected 2.6%. India's central bank will announce its interest rate decision Friday. The Reserve Bank of India is expected to hold its key policy rate at 6.50%...
Nominal wages in Japan rose 2.6% year-on-year in October 2024, marking the slowest growth since May, in line with market expectations. In contrast, inflation-adjusted real wages—a key measure of consumer purchasing power—held steady compared with October 2023. That was an improvement from a 0.4% decline in September and a 0.8% decline in August. The stability in real wages has strengthened expectations of an interest rate hike by the Bank of Japan this month, although market sentiment remains divided over whether the next hike will come in December or January. BOJ Governor Kazuo Ueda...
US stocks closed lower on Thursday, retreating from records as investors tread cautiously ahead of Friday's pivotal jobs report, which could influence the Federal Reserve's December rate decision. The S&P 500 and Nasdaq slipped 0.2%, while the Dow Jones dropped 248 points. Weekly jobless claims rose to 224,000, slightly above expectations, indicating a cooling labor market. Tomorrow's nonfarm payrolls report is anticipated to show a gain of 200,000 jobs, with weaker data potentially bolstering expectations for a rate cut, currently at a 74% probability for a 25-basis-point reduction at...
Wall Street's main indexes were mostly flat on Thursday after recording all-time closing highs in the previous session, with focus on the monthly employment report due on Friday as markets mostly brushed off weekly jobless claims data. The crucial nonfarm payrolls report, scheduled for release before markets open, could be key in gauging the Federal Reserve's interest rate trajectory. Eric Clark, portfolio manager at the Rational Dynamic Brands Fund, said the market could get a rate cut in December but the Fed might be more cautious going forward. "They have already hinted about being...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...