Federal Reserve Bank member and Cleveland Fed President Loretta Mester said she expects rates to rise significantly before the Fed eases its fight against inflation. Specifically, Ms Mester said she sees interest rates rising above 4% in the coming months. As a reminder, the range of the federal funds rate, which determines what banks charge […]
Tag: FED (Federal Reserve)
The ‘ghost of 1994’ of the Fed is haunting Asian markets
By William Pesek Asia will always have complicated feelings about Alan Greenspan. In the mid-to-late 1990s, the then chairman of the Federal Reserve Bank (Fed) was a real celebrity. His photo was featured in People magazine, Entertainment Tonight and on the front pages of national newspapers. Managing the world’s largest economy brought a brilliant biography […]
Williams (Fed): Interest rates should rise above 3.5%
New York Federal Reserve Bank President John Williams said on Tuesday that the central bank would likely need to raise interest rates above 3.5% to put downward pressure on inflation and drive demand to better levels than with the limited offer. Inflation is expected to be between 2.5% and 3% next year, he said, which […]
El Erian: Powell sent the right message but repeated the mistakes of the past
Federal Reserve Bank President Jay Paul sent the right message from Jackson Hole to markets about the bank’s determination to curb inflation, but he failed to avoid past policy mistakes in his speech, according to renowned economist Mohamed El They were. “He finally sent the right message. He should have done it months ago,” Allianz’s […]
BlackRock: Fed ‘must go on vacation’ after 2022 rate hikes
The Federal Reserve’s rate hikes in 2022 to fight inflation are likely enough to put its officials on hold, limiting the risk of too much tightening damaging the U.S. economy, BlackRock said. This position was expressed in a note by Rick Reeder, head of fixed income investments at the world’s largest asset manager. The Fed […]
Citi: Bear market almost inevitable for Japanese stocks after Powell speech
A bear market in Japanese stocks is “almost inevitable” as a recent speech by US Federal Reserve Chairman Jeron Powell pulled the rug out from under the relief rally that markets have been on since mid-July, an executive said. equity strategy of Citigroup Global Markets Japan which is cited by the Bloomberg agency. According to […]
Handelsblatt: The big central banks must not show any weakness
It is perhaps the event of the year for anyone even remotely interested in monetary policy and its consequences for capital markets and the real economy, comments Handelsblatt. Around the world, trading rooms were on high alert as Fed Chairman Jerome Powell began his speech at the central bankers’ traditional meeting in Jackson Hole on […]
Bostic (Fed): Smaller rate hike in September as PCE eases
The member of the Board of Directors took a position in favor of a milder increase in Fed interest rates. and head of the Atlanta branch, Rafael Bostic, shortly after data showed that the personal expenditure index (PCE) – the Bank’s preferred gauge of inflation – was slowing. In particular, in his statements after the […]
Harker (Fed): Interest rates must exceed 3.4% and ‘then wait’
The Federal Reserve should continue to raise interest rates until they exceed 3.4% and then “wait for a while,” Philadelphia Fed President Patrick Harker said Thursday on CNBC. “We don’t need to rush into the up move and then the down move,” Harker said in a televised interview shortly before the start of the Fed’s […]
Bullard (Fed): Inflation will be more persistent than we expected
The president of the branch of St. Louis Federal Reserve’s James Bullard said Thursday that he expects high inflation to prove more persistent than many expect and that interest rates at their current levels may not be high enough to begin to reverse the upward trend in prices. In an interview with US network CNBC […]