June 2018 was a blue-sky month for the Federal Reserve, with strong economic growth, low unemployment, and inflation expected to top the U.S. central bank’s 2% target for the year – smooth sailing for an interest rate hike then and two more over the following six months.
— Read on www.reuters.com/article/us-usa-fed-inflation/inflation-drop-may-be-at-core-of-case-for-fed-rate-cuts-idUSKCN1TL2PY
Tag: Interest Rates
Italy Economy Seen Contracting Again, in Blow to Populists – Bloomberg
Italy’s economy probably shrank again this quarter, according to the country’s statistics office, complicating the populist government’s efforts to meet its fiscal commitments.
— Read on www.bloomberg.com/news/articles/2019-06-20/italy-economy-seen-contracting-again-dealing-blow-to-populists
Guindos Says ECB Ready to Act If Euro-Area Economy Deteriorates – Bloomberg
European Central Bank Vice President Luis de Guindos said the outlook for the euro-area economy has deteriorated and policy makers are ready to provide additional monetary stimulus if needed.
— Read on www.bloomberg.com/news/articles/2019-06-20/guindos-says-ecb-is-prepared-to-act-if-situation-deteriorates
Fed sees case building for interest rate cuts this year – Reuters
The U.S. Federal Reserve on Wednesday signaled interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks as it took stock of rising trade tensions and growing concerns about weak inflation.
— Read on www.reuters.com/article/us-usa-fed-kudlow/fed-sees-case-building-for-interest-rate-cuts-this-year-idUSKCN1TJ24A
Goldman Sachs now expects Fed rate cut in July and Sept – Reuters
Goldman Sachs Group Inc analysts now expect the U.S. Federal Reserve to cut interest rates in July and in September, according to a research note issued after Fed Chairman Jerome Powell on Wednesday signaled a rate cut as early as next month.
— Read on www.reuters.com/article/us-usa-economy-goldman-sachs/goldman-sachs-now-expects-fed-rate-cut-in-july-and-sept-idUSKCN1TL0AB
Bank of Japan joins Fed in signaling easing if needed, keeps policy steady for now – Reuters
The Bank of Japan kept monetary policy steady on Thursday but Governor Haruhiko Kuroda signaled readiness to ramp up stimulus as global risks cloud the economic outlook, joining U.S. and European central banks in dropping hints of additional easing.
— Read on www.reuters.com/article/us-japan-economy-boj/bank-of-japan-joins-fed-in-signaling-easing-if-needed-keeps-policy-steady-for-now-idUSKCN1TL06C
Bank of England to Keep Key Rate Unchanged as Outlook Darkens
All but one of the 20 analysts surveyed by Bloomberg predict a unanimous vote to keep the benchmark at 0.75%. Political turmoil, a lack of clarity about Britain’s departure from the European Union, weaker-than-expected economic data and signs the U.S. Federal Reserve is on course to reverse its recent
— Read on ca.finance.yahoo.com/news/bank-england-keep-key-rate-040000848.html
Bank of Canada will likely join ‘rate-cutting party’ in 2020, CIBC says – BNN Bloomberg
Bank of Canada will likely join ‘rate-cutting party’ in 2020, CIBC says – BNN Bloomberg
— Read on www.bnnbloomberg.ca/bank-of-canada-will-likely-join-rate-cutting-party-in-2020-cibc-says-1.1270281
No longer a question of if Fed will cut interest rates, but when
Economists say it’s now likely the Fed will cut rates this year, possibly as early as July.
— Read on www.cnbc.com/2019/06/07/its-no-longer-a-question-of-whether-the-fed-will-cut-interest-rates-but-when.html
Goldman Sachs and UBS execs: Markets are ‘overpricing’ Fed rate cuts
The financial markets are getting too far ahead on expectations for potential for Federal Reserve rate cuts, according to a pair of top global bankers at UBS and Goldman Sachs.
— Read on www.cnbc.com/2019/06/06/goldman-sachs-and-ubs-execs-markets-are-overpricing-fed-rate-cuts.html