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...
European stocks were mixed on Wednesday as regional market attention focused on an upcoming no-confidence vote in the French parliament, the National Assembly. The vote is expected to take place tonight after lawmakers debated two motions of no confidence, brought by the left-wing New Popular Front alliance and the right-wing National Rally party, against Prime Minister Michel Barnier's minority government. The motions came after Barnier used special constitutional powers on Monday to push through a disputed budget bill without a parliamentary vote. The National Rally has said it will...
China's 10-year government bond yield plunged to around 1.98%, nearing an all-time low, following the release of the latest PMI data. On Wednesday, a private survey showed China's services PMI fell in November 2024 from a three-month high in October, missing market expectations. In contrast, earlier this week, the same survey offered a more optimistic outlook, with the manufacturing PMI showing expansion for a second straight month, hitting a five-month high and beating estimates. The mixed signals underscore the uneven recovery across China's economic sectors. Elsewhere, the Communist...
The Shanghai Composite declined 0.2% to around 3,372, while the Shenzhen Component dropped 0.1% to 10,700 on Wednesday, with Chinese stocks struggling to build on recent gains as caution prevailed in the region following a political upheaval in South Korea. Economic uncertainties in China, exacerbated by US President-elect Donald Trump's tariff threats, also weighed on the market outlook. Moreover, data showed that Chinese services sector growth unexpectedly decelerated in November amid slowing new business and foreign sales. Adding to the uncertainty, China's Politburo chose not to...
Hong Kong stocks rose 29 points, or 0.2%, to 19,781 in early trade on Wednesday, rising for a fourth session amid a sharp rise in U.S. stock futures after Wall Street hit another record high overnight, ahead of upcoming monthly U.S. jobs data and a speech by Fed Chair Powell. Meanwhile, private survey data showed China's services sector expanded for a 23rd straight month in November, although the pace of growth slowed from a three-month peak in October. Consumer and technology stocks were mostly higher, following remarks from China's central bank that it will adopt supportive policies next...
China Caixin General Services PMI fell to 51.5 in November 2024, down from a three-month high of 52.0 in October and below market expectations of 52.5. The latest reading reflected moderation in new business growth, despite faster growth in overseas sales. Meanwhile, employment increased for the third straight month, albeit only slightly. On the cost side, input prices rose slightly on higher wages, although the inflation rate eased to a 53-month low and remained below the series average. Output prices fell for the third straight month amid increased competition. Finally, business...
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...