Stephen Miran, a Federal Reserve governor whose term ends at the end of January, said Thursday that he is looking for 150 basis points of interest-rate cuts this year to boost the U.S. labor market. Miran told Bloomberg Television's Surveillance program that Fed officials had room to further reduce rates given his view that underlying inflation was likely running at 2.3%. "I'm looking for about a point and a half of cuts. A lot of that is driven by my view of inflation," Miran said. "Underlying inflation is running within noise of our target, and that's a good indication of where overall...
The Federal Reserve on Wednesday said that it would start buying short-dated government bonds to help manage market liquidity levels to ensure the central bank retains firm control over its interest rate target system. The technically oriented purchases will commence on December 12, the central bank said as part of the policy announcement associated with its latest Federal Open Market Committee meeting. When it begins buying, the initial round will total around $40 billion in Treasury bills. The Fed said in a statement that its buying "will remain elevated for a few months to offset...
The U.S. Federal Reserve is expected to cut interest rates on Wednesday as policymakers grapple with a data gap caused by the recent government shutdown and address conflicting views about the risks facing the economy. The anticipated quarter-percentage-point cut is likely to be accompanied by an uncertain or even aggressive approach to the interest rate path next year, given the division among policymakers between those skeptical about the need for more rate cuts amid persistently high inflation and those who believe the economy and job market could weaken if the U.S. central bank doesn't...
Federal Reserve (Fed) officials are expected to cut interest rates again on Wednesday, marking the third consecutive rate cut. However, many analysts believe that after this move, the Fed will likely pause and not rush to cut rates again early next year. This is because some officials are starting to worry that excessive cuts could trigger an overheated economy. Within the Fed itself, there are sharp differences of opinion. Some believe that interest rates are currently at a "neutral" level, meaning they are neither slowing nor accelerating economic growth. On the other hand, others believe...
The Reserve Bank of Australia (RBA) kept its benchmark interest rate unchanged at 3.6% for the third consecutive year at its final meeting on Tuesday. The decision was unanimously adopted by the nine-member board amid a combination of resurgent inflationary pressures and a still-tight labor market. In its statement, the RBA emphasized that its next move would depend heavily on incoming economic data, and that it needed more time to assess the strength and persistence of inflationary pressures. Following the decision, the Australian dollar weakened to around US$0.6616, while the three-year...
The U.S. Federal Reserve's meeting this week will begin to set expectations for President Donald Trump's upcoming nominee to lead the central bank, potentially leaving policymakers in a bind between inflation concerns shared broadly and Trump's demands for interest rate cuts. A quarter-percentage-point rate cut seems a given at the two-day meeting that ends on Wednesday, but language around that decision and accompanying economic projections will show whether the next chair will take over a body primed against further cuts or more open to argument and with a more dovish near-term...
Bank of Japan (BOJ) Governor Kazuo Ueda stated that achieving 2% inflation is getting closer, although real inflation remains low. Ueda emphasized that the BOJ will continue to raise interest rates...
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...