简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Mester pushed back against market expectations that the Fed will use outsized hikes to help bring down inflation.
Cleveland Federal Reserve Bank President Loretta Mester on Friday pushed back against market expectations that the Fed will use outsized hikes to help bring down inflation, saying she prefers a more“methodical” approach.
“I would support at this point, given where the economy is, a 50 basis point rise in May and a few more to get to that 2.5 percentish level by the end of the year,” Mester said on CBNC, referring to the level of borrowing costs she believes would be “neutral” for economic activity. At that point, she said, the Fed could assess the state of the economy and inflation, and either pause rate hikes or make further increases.
Asked if she would support a 75 basis point rate hike, she said: “You don't need to go there at this point.” Please download WikiFX for more forex news.
Traders on Friday were pricing in two such rate hikes following a half-point hike in May, a day after Fed Chair Jerome Powell signaled he would be open to “front-end loading” the U.S. central bank's retreat from super-easy monetary policy.
“Doing one outsized move in the funds rate doesn't really appear to me to be the right way to go,” Mester said. “I would rather be more deliberative and more consistent in bringing up the funds rate.”
Her remarks are likely to be the last public commentary from any Fed policymaker before they next meet, on May 3-4.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
In May, the Reserve Bank of New Zealand (RBNZ) decided to maintain the Official Cash Rate (OCR) at 5.50%. This decision reflects a commitment to keeping monetary policy restrictive to manage inflationary pressures and ensure that inflation returns to the target range of 1-3% by the end of 2024. The latest UK GDP data (MoM) for April 2024 showed that the economy remained flat at 0.0%, following a 0.4% increase in March 2024. This stagnation is attributed to declines in industrial output and...
According to survey data, this year, many American travelers are opting for air travel over traditional road trips during the Memorial Day long weekend, marking an upward trend! On the other hand, bullish sentiment on the US dollar is beginning to retreat, turning net short for the first time in six weeks!
According to the US Census Bureau, retail sales in the US rose by 0.6% on monthly basis in February. This reading followed a 1.1% decline registered in the initial month of the year, amounting to $696.7 billion, and fell below the anticipated 0.8% increase. In January, the unemployment rate unexpectedly rose to 3.9% from December's 3.8%, while wage growth slowed in the UK labor market, signaling weaknesses consistent with a broader economic slowdown. In Feb, Canada experienced an unexpected
The article suggests positive prospects for Malaysia's Ringgit (MYR) based on projections by BMI, indicating potential strengthening trends in the latter half of 2024 and early 2025. Factors such as anticipated policy relaxation, stability in yield differentials, and favourable external conditions contribute to this outlook. However, whether this constitutes "good news" for the MYR ultimately depends on various factors, including economic performance, policy decisions, and external developments, which may impact currency movements.