FOMC Statement and Press Conference January 29, 2025 As expected, there was no change made in the 4.25-4.50% federal funds rate target, and balance sheet reduction will continue as previously indicated. Several tweeks were made to the FOMC’s characterization of U.S. economic trends: December’s statement called unemployment stabilized at a low level; this month joblessness…
Potential for Tension Between Trump and Fed January 28, 2025 During his first term as president, the relationship between the Trump and Federal Reserve policymakers was contentious. After the Fed Chairman then and now warned of adverse financial market repercussions from trade sanctions, Trump characterized Japan Powell as an enemy of America. It did not…
Market Focus Returns to Central Bank Policies January 28, 2025 The Federal Open Market Committee’s first of eight scheduled policy reviews in 2025 begins today. Tomorrow’s second day will end with an announcement likely to be neutral in tone and devoid of any further cut in interest rates this time but dispelling of the possibility…
Pakistani Central Bank Rate Cut January 27, 2025 Pakistan’s central bank policy rate had been as low as 7.0% from June 2020 until September 2021 and as high as 22% from June 2023 until June 2024 after Pakistani CPI inflation peaked at 38% in May 2023. Today’s rate cut of one percentage point to 12.0%…
Softer Dollar and Wild Overnight Session in Equities January 27, 2025 (207) The dollar fell overnight by 1.2% against the yen, 0.9% versus the Swiss franc, and 0.2% relative to the euro and sterling. The weighted DXY dollar index is 2.6% weaker than its 2025 high touched two weeks ago. Stock markets initially plunged, fed…
Next Week’s Menu: January 25-31, 2025 January 24, 2025 Central Banks: Monetary policies will be reviewed at the Federal Reserve, European Central Bank, South African Reserve Bank, Central Bank of Brazil, Bank of Canada, Hungarian National Bank, National Bank of KrygyztanState Bank of Pakistan. Fed Chair Powell, ECB President Lagarde, and Bank of Canada Governor…
Bank of Japan Lifts Interest Rate January 24, 2025 The new 0.5% Bank of Japan interest rate is not only its highest since November 2008 but also matches its highest point since September 1995. This week’s Bank of Japan Board meeting coincided with an updated Outlook for Economic Activity and Prices with new forecasts that…
Singapore’s First Monetary Easing Since 2020 January 24, 2025 The Monetary Authority of Singapore, which subordinates interest rate policy to an exchange rate policy, loosened its monetary policy today. The central bank’s policy consists of a trading corridor for the trade-weighted Singapore dollar, defined by the slope, width and midpoint of target. Officials reduced the…
Bank of Japan Eases, January Purchasing Manager Surveys, and Various Comments from Trump January 24, 2025 The dollar fell overnight by 0.8% against the peso, 0.6% versus the yuan, 0.5% relative to the euro and sterling, 0.4% vis-a-vis the Australian dollar and 0.3% against Canada’s dollar. Alternatively, the dollar firmed 0.2% versus the yen as…
Ukraine Central Bank Rate Raised by a Percentage Point January 23, 2025 Ukraine’s geopolitical fate will depend critically on President Trump’s modification of U.S. support. To paraphrase Lady Macbeth, “the attempt and not the deed confounds him.” Trump appears predisposed to pulling the plug, but the risk of a messy exit a la Biden’s withdrawal…