Federal Reserve Bank of San Francisco President and FOMC member Mary Daly said on Thursday that policymakers will need to raise interest rates to keep the economy in balance. “Even if we do a couple of interest rate increases, monetary policy will still be accommodative”, she added. Additional Remarks:“Inflation is …
Read More »German Factory Orders Rebound Sharply by 3.7% MoM
The German Factory Orders rebounded more than expected in November, suggesting that Europe’s economic powerhouse’s recovery in the manufacturing sector seems to have regained traction. Contracts for goods’ Made in Germany’ jumped 3.7% on the month vs. 2.1% expected and -5.8% last, the latest data published by the Federal Statistics …
Read More »Market Drivers – US Session – 5 January
The US dollar edged lower for most of Wednesday but got an unexpected push by the US Federal Reserve’s Meeting Minutes. US policymakers use the kind of language confirming a looming interest rate hike and that the quantitative easing, stimulus asset and asset purchases are no longer necessary.The minutes document …
Read More »UK Inflation Concerns Hit The Highest On Record For Businesses
“More UK businesses than ever before are worried about inflation, and a record number are planning to increase their own prices,” said Bloomberg while conveying the latest British Chambers of Commerce (BCC) details on early Thursday morning in Asia.The news also quotes Suren Thiru, Head of Economics at the BCC …
Read More »BoJ Poised to raise CPI Projection For 2022
“The Bank of Japan’s government debt holdings have fallen for the first time in 13 years as the central bank quietly adjusts its massive bond-buying program in the face of looming financial risk,” said Nikkei while conveying details of the Bank of Japan’s stealth tapering during early Thursday morning in …
Read More »Wheels Now Put In Motion By Fed for US Balance Sheet Reduction
Minutes from the Fed’s December meeting indicated that policymakers are ready to aggressively dial back policy stimulus.One key aspect, the US central bank’s balance sheet, was the subject of prolonged discussions, with policymakers pointing to a reduction in bond purchases during the coming months. Fed Members expressed concern about inflation …
Read More »How Have Assets, Markets Reacted To FOMC Minutes?
The US dollar edged lower for most of Wednesday, but eventually received an unexpected boost from the US Federal Reserve’s Meeting Minutes. Fed policymakers noted that “In light of elevated inflation pressures and the strengthening labor market, participants judged that the increase in policy accommodation provided by the ongoing pace …
Read More »FOMC Minutes: Conditions For Rate Hike Could Be Met Soon
The minutes of the 14-15 December FOMC meeting, released on Wednesday, said most participants judged conditions for rate hike could be met soon. According to FOMC Minutes, recent high levels of inflation will raise the public’s longer-term inflation expectations to levels higher than those consistent with the committee’s longer-run inflation …
Read More »Reading US ISM Data: Price Pressures Still Extraordinarily High
The biggest sequential drop in more than a decade for the prices paid component and shorter wait times for desperately needed supplies were the two primary drivers of the 2.4-point decline in the ISM manufacturing index to 58.7 in December “The drop in December’s ISM manufacturing index to 58.7 from …
Read More »Gold is Rising After The Biggest Loss in 6 Weeks
Gold prices rose on Tuesday after rising US bond yields, supported by bets that the Federal Reserve would raise interest rates faster than expected, pushed the precious metal to its biggest drop in six weeks in the previous session. And gold rose 0.2 percent in spot contracts to $ 1804.40 …
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