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...
In an interview with CNBC on Friday, Federal Reserve Bank of Chicago President Austan Goolsbee said they should wait for things to get clearer when there is so much uncertainty. Key points "There has been a clear shift toward anxiety and anticipation of capital spending among business contacts." "The current conditions may be a shock to the economy depending on how long they last." "The Fed needs to be calm and take a long-term view of the economy." "Markets want information quickly but that's not realistic right now." "There's still a lot of strength in the economy right...
Will the Fed signal more or less rate cuts? Higher inflation expectations and dimmer growth prospects compete with each other. All eyes are on Chair Powell. Fed may opt for patience amid panicThe Federal Reserve (Fed) is projected to leave interest rates unchanged at its March meeting. However, every word that Chair Jerome Powell says and every change to the bank's forecasts are critical for markets. In the last "dot plot" in December, the bank signaled only two rate cuts are due in 2025, half of what it previously forecasted. That hawkish twist came as the economy looked strong and...
The United States (US) Federal Reserve (Fed) will announce its monetary policy decision and release its revised Summary of Economic Projections (SEP), known as the dot plot, after its March policy meeting on Wednesday. Market participants widely anticipate the US central bank to leave policy settings unchanged for the second straight meeting, after cutting interest rates by 25 basis points (bps) to a range of 4.25%-4.5% in December. The CME FedWatch Tool shows that investors see little chance of a rate cut in March while pricing in about a 30% chance of a 25 bps cut in May. Therefore, the...
The Bank of Japan kept its key policy rate unchanged, as authorities continued to assess the potential impact on the global economy from escalating trade tensions. Governor Kazuo Ueda's board voted to keep the policy rate at 0.5% Wednesday at the end of a two-day gathering, according to its statement. The result was in line with the expectations of all 52 economists surveyed by Bloomberg. The central bank added a reference to the evolving situation regarding trade and other policies to its list of risks to the outlook. The stand-pat decision comes as domestic...
Federal Reserve Chairman Jerome Powell said Friday that the central bank can wait to see how President Donald Trump's aggressive policy actions play out before it moves again on interest rates. With markets nervous over Trump's proposals for tariffs and other issues, Powell reiterated statements he and his colleagues have made recently counseling patience on monetary policy amid the high level of uncertainty. The White House "is in the process of implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation," he said in a speech for the...
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...