Tag Archives: QE

Some European Central Bank officials are coming under increasing heat from Eurozone governments as accelerating inflation stokes tension.Governing Council member Peter Kazimir of Slovakia defended the Frankfurt-based ECB on Wednesday against his country’s economy minister, Richard Sulik, who said asset purchases under the bank’s quantitative easing program were hurting consumers. …

The European Central Bank opted to leave its deposit rate unchanged at -0.5% on Thursday as unanimously expected. The bank maintained its guidance on interest rates, saying they would remain at present or lower levels until the conditions for a rate hike have been met. The bank also reaffirmed its …

The US dollar and yields have shot higher, extending the post-Fed statement gains during Fed Powell’s hawkish pivot. Bulls have got behind a faster pace of tightening than what had been priced in. The Federal Reserve did what was expected from them in the main and there had been low …

Fed Chair Jerome Powell, in his usual post-Fed meeting press conference on Wednesday, said there is a risk high inflation will be prolonged, even though it’s not our base case. Additional Remarks:“We have to be able to address all plausible outcomes.”“We need to be in a position to address the …

GBP/USD has exhibited a choppy post-Fed reaction, swinging from just above 1.3500 pre-announcement to as high as the 1.3520s and then lower again to current levels around 1.3510. There hasn’t been much follow-through in terms of an FX market reaction in wake of the Fed’s latest monetary policy decision, which …

The Federal Open Market Committee’s two-day meeting has concluded on Wednesday and the statement has been released along with the Fed’s interest rate decision in a highly anticipated event for financial markets.Markets were expecting the Fed to give guidance on asset purchases that were expected to conclude in March. However, …

The AUD/USD pair is stable in the 0.7140 area on Tuesday after Monday’s brief dip below 0.7100. Hotter than expected Australian CPI data is helping shield AUD from further risk appetite-related losses as US equities slide.After coming within a fraction of hitting the December 20 lows just above 0.7080 on …

Global Central Banks Start Turning Off Cash TapsAs speculation grows about when the US Federal Reserve will begin reducing the size of its balance sheet, some analysts say the era of “quantitative tightening” has already started and “quantitative easing” is over.Central bank balance sheets have ballooned since the pandemic struck …

The S&P 500 has reclaimed 4700 on Tuesday amid broad US equity market upside as tech recovers post-Powell remarks. The index has recovered more than 2.8% from Monday’s sub-4600 lows.The lack of any fresh hawkish surprises seemed to give the green light for a technical reversal of recent moves. Having …

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 …