-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI: Cook Says Prudent For Fed To Move In Smaller Steps
Federal Reserve Governor Lisa Cook said Wednesday it would be prudent for the central bank to start moving in smaller steps, given the monetary tightening already in the pipeline and that policy works with long lags.
While "inflation remains much too high" and the Fed must continue to focus on bringing inflation back down to the 2% target, Cook says: "We have begun to see some improvement in the inflation data."
"How far we go, and how long we keep rates restrictive, will depend on observed progress in bringing down inflation," she said.
Core goods inflation has finally begun to slow "significantly," helped by improvement in global supply chains, she said, while services inflation remains high. "Nonetheless, some good news is emerging on this front. Rent increases on new leases have slowed in recent months," she said.
"Still, these positive developments are likely to feed into measured consumer prices only gradually." (See: MNI INTERVIEW:US Inflation Likely At Turning Point-SF Fed Econ)
RESILIENT CONSUMERS
Since March, the FOMC has raised its policy rate nearly 4 percentage points. "That tightening is clearly slowing demand in sectors that are interest sensitive, especially housing, with residential investment contracting sharply," she said in prepared remarks for a speech at the Detroit Economic Club focusing on U.S. productivity.
Consumer spending has remained resilient, supported by labor income growth and still elevated savings, she said, also pointing to labor market tightness as a reason to continue hiking rates.
"Labor compensation is a key factor for non-housing services prices, and growth in labor costs remains well above pre-pandemic rates," she said. While there has been some moderation recently, "wage growth remains above what would be consistent with 2 percent inflation, given prevailing trends in productivity growth."
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.