FOMC Statement, Projections and Press Conference June 18, 2025 Statement: No significant changes were made from the May 7 statement. Swings in net exports were observed but do not change the strong continuing pace of growth. Unemployment remains low; labor markets are still solid; and inflation remains somewhat elevated. The federal funds target was not…
June 2025 FOMC Meeting Preview June 18, 2025 The Federal Reserve’s federal funds target was cut at the last three scheduled FOMC meetings in 2024 by a total of 100 basis points to a range of 4.25-4.50% but has been left at that level at each of the first three policy reviews this year. Amid…
Swedish Interest Rate Cut June 18, 2025 The Swedish Riksbank’s rate cut from 2.25% to 2.0% had been widely expected. It was the first change since a 25-basis point cut in January. At 2.0%, the new rate is half the peak of 4.0% from September 2023 to May 2024 and at its lowest level since…
No Change in Japanese Central Bank Interest Rate… Again June 17, 2025 The Bank of Japan’s short-term interest rate was yet again left at the very accommodative level of 0.50% that has been policy since a 25-basis point hike in January. This extended pause had been anticipated and was decided unanimously by the nine-person Board…
Several Central Banks Deterred from Cutting Interest Rates by Geopolitical Strains and Tariff Policy Uncertainty June 17, 2025 The policy interest rate of the State Bank of Pakistan was maintained at 11.0%. That’s just half of the 22.0% peak level during the 12 months ending in June 2024 but still twice the 5.75% low touched…
Fears Lessen about Oil Supply Fallout from Israeli-Iranian Military Conflict June 16, 2025 Israeli missile attacks so far have stayed clear of major Iranian oil production installations. Having soared earlier overnight to as high as $77.4 per barrel, the price of West Texas Intermediate crude settled back to $72.07 for a net decline so far…
This Week’s Menu: June 14-20, 2025 June 14, 2025 Central Banks: Monetary policy reviews are scheduled in the United States, Japan, U.K., Brazil, Chile, Armenia, Pakistan, Moldova, Czech Republic, Taiwan, Sweden, Norway, China, Turkey, and the Philippines. Fed Chairman Powell with updated forecasts, Bank of England Governor Bailey, and Bank of Japan Governor Ueda hold…
Three Huge Sources of Stress on World Financial Markets June 13, 2025 Number one and most importantly, Israeli forces conducted a strike on Iranian nuclear and military installations and is promising escalating continuing attacks in the days ahead. Iranian officials are claiming the actions to constitute a declaration of war. Trump urges Iran to make…
Attention to What Central Banks Are Doing with Interest Rates June 5, 2025 The European Central Bank is widely expected to cut its interest rate for the eighth time in the past year. An anticipated 25-basis point reduction of the deposit rate to 2.0% would bring the cumulative drop to 250 basis points from peak….
Bank of Canada Keeps Interest Rate Reduction on Hold June 4, 2025 As many analysts were expecting, Canada’s policy interest rate was left unchanged at 2.75% today. Officials had also paused policy easing at the previous review in April, interrupting a string of rate cuts begun in June 2024 from a cyclical high of 5.0%…