Its preference for a 75 basis point (0.75%) increase in the base rate against 50 bp. on behalf of the US Federal Central Bank, Federal Reserve, expressed the president of the St. Louis Fed branch, James Bullard. The member of the Federal Open Market Committee (FOMC), which makes decisions on the path of interest rates, […]
Tag: FED (Federal Reserve)
Citi: Markets are seeing a message from the Fed that ‘simply isn’t there’
The US Federal Reserve is more determined than markets think to curb inflation, Citigroup warns. With the market digesting the minutes of the Fed’s last meeting in July, Citi economist Andrew Hollenhorts believes the widely held conclusion that the central bank is preparing to slow its rate hikes is wrong. “Risk markets seem determined to […]
Daly (Fed): A rate hike of 50 or 75 bps makes sense. in September
San Francisco Federal Reserve Bank President Mary Daly said today that an increase in US interest rates by 50 basis points, or 75 bp. at the next meeting in September it would be a “sensible” move to drive short-term borrowing costs slightly above the 3% level by the end of 2022 and slightly higher than […]
Fed: Interest rates at ‘restrictive levels’ to control inflation
Federal Reserve officials reiterated last month that future rate hikes would be shaped by the evolution of incoming data, with some noting that rates would need to remain at “sufficiently restrictive levels” for “some time” in order to to control inflation, according to the minutes of the July meeting (26-27) published today. Central bankers admitted […]
The big pitfall for the Fed
By Mohamed A. El-Erian Over the past 18 months or so, the quick and easy interpretation of inflation data has been proven wrong. Will things be different in the future? The markets certainly hope so. Federal Reserve officials seem more cautious — and rightly so. The markets’ latest change of narrative is not the best […]
Goldman Sachs: It will be difficult for the Fed to tame inflation without causing a recession
The U.S. central bank may have made progress in allaying concerns about the path of the economy, but it is showing little progress in slowing wage growth and reining in high inflation, according to Goldman analysts. Sachs, who estimate that the Fed will struggle to tame soaring prices without triggering a recession. The stock market […]
Roubini: Two scenarios for the American economy, the bad and the worst
The US economy has two options, according to Nouriel Roubini, given the most aggressive monetary tightening in decades, either a steep economic landing into recession or inflation running rampant. “Fed interest rates would have to go well above 4%, to 4.5% to 5% in my view, for the bank to really push inflation toward 2%,” […]
The minutes of the Fed may reveal the size of the next rate hike
An account of the debate at the Federal Reserve’s July meeting, to be released later this week, will likely provide clues as to what could push the central bank to tighten again in September. The decision by Fed officials at their July 26-27 meeting to raise their key interest rate for a second month in […]
Barkin (Richmond Fed): ‘We must raise interest rates to restrictive levels’
Richmond Fed President Thomas Barkin called for further interest rate hikes by the US central bank to tame high inflation. He said he would monitor US economic data to decide how much of a rate hike he would support at the Fed’s next meeting in September. “I’d like to see inflation under control for an […]
Don’t rush to celebrate inflation – It’s still unpredictable
By Jonathan Levin US inflation has finally surprised markets in a positive way and traders are understandably excited that the worst of the upward price pressures may finally be behind us. However, the real turn to better days will come when inflation ceases to be generally shocking – positively or negatively – and can recede […]
