Federal Reserve Bank of New York President John Williams said Thursday that he sees lower risks to inflation as tariffs have driven up price pressures less than expected. "I see on the margin...a reduction of some of the upside risks to inflation" from tariffs, Williams told reporters after speaking at the Economic Club of New York. He noted this reduction comes alongside greater clarity about future economic policy. Williams acknowledged that President Donald Trump's import tax increases are "definitely" affecting price pressures, but added that in terms of tariff pass-throughs to higher...
The United States (US) Federal Reserve (Fed) announced on Wednesday that it left the policy rate, federal funds rate, unchanged at the range of 4.25%-4.5% following the June policy meeting. This decision came in line with the market expectation. Source: Fxstreet
Markets expect the Fed to keep rates on hold today. Recent data has surprised in a dovish direction, but projections and the dot plot will shift more hawkish. The ‘hard' data from the projections likely gives a better signal of the Fed's rate trajectory than the ‘soft' data from Powell's press conference, ABN AMRO's economist Rogier Quaedvlieg reports. Fed to hold rates, but dot plot set for hawkish shift "Tonight the Fed will keep rates on hold. In the press conference, Powell will likely repeat the messaging of last time: they will consider the totality of the Trump administration's...
Bank of Japan (BoJ) Governor Kazuo Ueda reaffirmed the central bank's commitment to raising interest rates if underlying inflation nears its 2% target. While core consumer inflation has stayed above 2% for three years, demand-driven pressures remain subdued. Ueda told parliament the BoJ is keeping real interest rates negative to support stable, sustained inflation. "Once we have more conviction that underlying inflation will approach or hover around 2%, we will continue to raise rates," he said. The BoJ ended its decade-long stimulus last year, lifting short-term rates to 0.5% in January as...
The minutes of the Federal Reserve's (Fed) discount rate meetings from April 7, 28, and May 8 revealed that policymakers are increasingly uneasy about the coming economic impacts, mostly from U.S. trade policy. While overall economic conditions are stable, tariff uncertainty continues to weigh on business operators, who are preparing contingency plans and slowing their investment and spending rates. Key highlights Overall, central bank directors noted considerable uncertainty about the outlook. While most directors described current economic conditions as generally stable, they also...
Austan Goolsbee, President of the Chicago Federal Reserve Bank, expressed his belief on Monday that the U.S. central bank will be able to reduce short-term borrowing costs once the uncertainty caused by tariff policies is resolved. During a webcast interview with the Quad Cities Regional Business Journal in Davenport, Iowa, Goolsbee stated that if the economy can navigate through this challenging period, the dual mandate looks promising. The dual mandate of the Fed is a reference to its two primary objectives: full employment and price stability. Goolsbee further stated his ongoing belief...
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...