Groundhog Day Ushers in February February 2, 2026 (154) The 1993 movie Groundhog Day showcased a seemingly endless loop of life, constantly reliving the same day. So it is that this Groundhog Day kicks of a new week and month but with a slew of familiar geopolitical tensions, central banking uncertainties, and one-hand/other-hand economic risks….
Central Bank of Colombia Undertakes Surprise Full Percentage Point Interest Rate Hike in Vote that Split Policymakers January 31, 2026 Colombia’s benchmark interest rate had been cut by total of 400 basis points from a peak of 13.25% and starting with a 25-basis point reduction in December 2023. The most recent cut, also of 25…
January 2026 in Figures January 31, 2026 The most spectacular financial market changes last month involved precious metals, whose prices posted impressive net gains despite enormous sell-offs on the final trading day of the month. At record peaks of $121.79 per ounce for silver and $5,626.8 for gold, those metal had accrued gains of 72%…
Next Week’s Menu: January 31 – February 6, 2026 January 30, 2026 Central Banks: Monetary policy reviews are scheduled at the European central bank and in Australia, the U.K., India, Iceland, Mexico, Poland, and the Czech Republic. A slew of public speaking engagements by various central bankers, several like Bailey of the Bank of England,…
Dollar and 10-Year Treasury Bond Yield Up but Not U.S. Equities in Wake of Warsh Nomination for Next Fed Chairmanship January 30, 2026 Since markets closed in the U.S. yesterday, the dollar has strengthened by 0.9% against the Japanese yen. 0.5% relative to the euro and sterling, 0.4% versus the Swiss franc and 0.3% against…
Dollar Modestly Lower January 29, 2026 Fed Chairman Powell’s press conference yesterday elicited a subdued reaction in financial markets. Typical of the end of each month, there is an extensive menu of data getting released around the world today and tomorrow. Relative to Wednesday closing levels, the dollar has slid 0.2% or less against a…
FOMC Statement and Powell’s Press Conference Afterward January 28, 2026 Changes made to the text of today’s statement and voting results at the meeting support today’s decision to to pause interest rate cutting after 25-basis point reductions at each of last year’s final three meetings. Stephen Miran, Trump’s temporary appointment to fulfill the governor ship…
No Change in 2.25% Overnight Bank of Canada Interest Rate January 28, 2026 The Bank of Canada’s decision to hold its interest rate level at 2.25% was as expected, and the quarterly Monetary Policy Report made scant changes to the 2026 and 2027 growth and inflation forecasts. From a peak of 5.0% from July 2023…
FOMC Preview January 28, 2026 The eight scheduled Federal Open Market Committee meetings scheduled each year have become instances of very high theater. The progressive ramping up of pressure on the committee from the Trump administration hit new heights during the seven weeks since the group last met, forcing Chairman Powell is issue an unprecedented…
Respite for the Dollar Ahead of FOMC Announcement January 28, 2026 Financial market watchers and participants are overwhelmingly convinced that the Federal Open Market Committee will leave its federal funds target at 3.50-3.75%. The announcement arrives at 14:00 EST and will be followed by Chairman Powell’s press conference beginning 30 minutes later. Fed forecasts do…