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Fed’s Bostic: Inflation path will be bumpy, but general trend is down; path to 2% inflation is not assured, Fed is vigilant
FED’S BOSTIC: INFLATION PATH WILL BE BUMPY, BUT GENERAL TREND IS DOWN || PATH TO 2% INFLATION IS NOT ASSURED, FED IS VIGILANT || JOB MARKET TIGHT BUT NOT AS TIGHT, MORE LIKE FEB. 2020
— First Squawk (@FirstSquawk) May 29, 2024
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FED’S BOSTIC: BREADTH OF PRICE GAINS STILL PRETTY SIGNIFICANT || LESS INFLATION BREADTH WOULD ADD TO CONFIDENCE FOR CUT
— First Squawk (@FirstSquawk) May 29, 2024
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Inflation and wages are kind of a chicken or egg issue. Do higher prices cause higher wages or do higher wages cause higher prices? I suppose it’s probably a little of both. There ...
post: RESERVE BANK OF AUSTRALIA HEAD ECONOMIST HUNTER: WE AGREE WITH THE TREASURY FORECAST ON INFLATION
Extending the dismal pace of US economy growth (if not outright contraction) observed in last month's Beige Book, which was validated by the sharp drop in Q1 GDP growth which ...
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post: SWISS NATIONAL BANK'S JORDAN: REASONS TO BELIEVE THE NATURAL RATE OF INTEREST HAS INCREASED OR MIGHT RISEJordan: The natural rate of interest (r*) as a reference point for monetary policy - a practitioner's view Ladies and gentlemen I am delighted to be here today in Seoul to address such a distinguished audience. I would like to thank Governor Rhee for inviting me to give this keynote speech. The topic of this year’s Bank of Korea International Conference – ‘The Evolution of the Natural Interest Rate and Its Implications for the Global Economy’ – could not have come at a better time. Monetary tightening over the past two years has lifted policy rates and longerterm interest rates from their historical lows. There are reasons to believe that some of the structural drivers of real interest rates have also changed direction in recent years. A lively debate has emerged on whether real interest rates will return to their pre-pandemic levels, or whether they will remain higher because the natural rate of interest, r*, has increased.1 Over the past years, r* has become an important reference point for monetary policy. The difference between the real interest rate and r* gives a measure of a central bank’s monetary policy stance. Therefore, r* estimates help in evaluating different monetary policy options. However, the measurement of r* is subject to high uncertainty. Today I would like to focus mainly on how policymakers can nevertheless make use of r* estimates in practice. In the first part of my remarks, I will briefly review the developments in real interest rates over the past decades. I will then turn to the concept of r* itself. In the second part, I will discuss how policymakers can use r* in practice to assess the monetary policy stance, and in particular, how they can deal with the inherent uncertainty in r* estimates. Here I will draw especially on the Swiss National Bank’s experience.
Weak demand for US 7-year treasuries sent Wall Street indices lower on Wednesday, on concerns that funding the US deficit will drive up yields alongside ‘higher for longer’ Fed ...
Out of 26 banks surveyed by Bloomberg there are 16 going for a 25bp rate cut by the Bank of Canada on 5 June, versus 10 favouring the BoC keeping the overnight lending rate at 5%. ...
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- Posted: May 29, 2024 7:45pm
- Submitted by:Category: Low Impact Breaking NewsComments: 0 / Views: 2,884
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