central bank

The Fed: Gradual Policy Tightening In Full Swing The Fed has reaffirmed its commitment to sticking to its plan of “gradual” policy normalisation with two more hikes forecast this year. The economic outlook is good, with the economy on track to grow by around 4% in Q2 2018, boosted by tax cuts with inflation continuing to creep higher. Employmen...

2018-07-05 James Harte Read more

The Federal Reserve is widely expected to raise the Federal Funds Rate today, from 1.75% towards 2.00% benchmark points. Exactly at 18:00 GMT the FED will issue a statement, which will contain the interest rate outlook, along with its latest economic forecasts. At this stage, the Market already priced in the June Fed rate hike, therefore, ...

2018-06-13 Richard Tataru Read more
Mester aims to maintain Fed's course

The President of The Cleveland Federal Reserve Bank, (known to be a hawk in the FOMC) Loretta Mester aims to maintain Fed's course, stating that the central bank must continue its gradual approach to raising interest rates as the inflation rate still did not reach the central bank's 2% inflation target rate. She spoke on Monday in Paris, amid a ...

2018-05-21 John Benjamin Read more

In Wednesday’s Federal Reserve policy statement, the US central bank indicated that: “Inflation on a 12-month basis is expected to run near the committee’s symmetric 2 percent objective over the medium term”. The reference to symmetric objective means the US central bank anticipates inflation to reach the 2.0% target and is willing to allow i...

2018-05-10 Ashraf Laidi Read more
US Producer Price Index or PPI

What is the US Producer Price Index or PPI? The US Producer Price Index or PPI, is a monthly economic reading published by the Bureau of Labour Statistics. It tracks the shifting prices received by domestic producers of goods and services for their output. In this regard, PPI differs from CPI (Consumer Price Index) as it measures the changes in...

2018-04-24 James Harte Read more
ECB meeting minutes paint a dovish picture

The European Central Bank released its monetary policy meeting minutes last week for the meeting that was held earlier in March this year. Policymakers expressed concerns on the risks of a full fledged trade war against the United States and also showed concern on the rising exchange rate. The ECB's meeting minutes covered the monetary policy...

2018-04-19 John Benjamin Read more
FOMC Minutes Highlight Concerns Around Trade Wars

While the Fed has confirmed its commitment to normalising monetary policy, the US Dollar traded lower in response to the release of the latest FOMC meeting minutes which revealed concerns among the rate setting committee. Members of the Federal Reserve Board highlighted their concerns about the potential impact of a global trade war, specificall...

2018-04-16 James Harte Read more
US rate hikes for 2018

The Federal Reserve policy maker, Loretta Mester has stated that the central bank should continue raising the interest rates for the remainder of this year and the year ahead. She said that the rate hikes will help the U.S. economy from overheating which could cut short the economic expansion which has been growing with a steady momentum. ...

2018-04-11 John Benjamin Read more
April 2018 Monthly Outlook

The month of March saw the Federal Reserve Bank hiking interest rates by 25 basis points in a highly anticipated move. The central bank signaled that it would stick to three rate hikes this year amid speculation that the Fed could move for a more aggressive rate hike path. The U.S. dollar remained mixed across the board during the month. Else...

2018-04-10 John Benjamin Read more

The Federal Reserve is widely expected to raise interest rates by 25 bps in today’s meeting. Markets are fixated on whether the central forecasts of FOMC members will shift towards signalling 4 rate hikes this year from the current forecast of three rate hikes. Their views on growth and inflation will also be of relevance. 3 or 4? Those wh...

2018-03-28 Ashraf Laidi Read more