-
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 PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
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 POLITICAL RISK - Trump Announces Raft Of Key Nominations
BRIEF: EU-Mercosur Deal In Final Negotiations - EC
MNI BRIEF: Limited Economic Impact Of French Crisis - EC
MNI: Fed's Collins Says Further Tightening Not Off Table
Boston Fed President Susan Collins said Friday further tightening is not off the table and emphasized that she expects rates to stay higher for longer.
"I fully support the FOMC statement and agree with the policy guidance in the median SEP projections. I expect rates may have to stay higher, and for longer, than previous projections had suggested, and further tightening is certainly not off the table," she said in prepared remarks.
Collins said although inflation is still too high, it is down from its earlier peak, and there is some evidence demand and supply are rebalancing. A labor market realignment is "needed to reduce the upward pressure on prices."
"Importantly, the current policy phase requires patience, allowing time to better separate the signal from the noise in the data," Collins said.
The FOMC this week left the fed fund rate in a range of 5.25% to 5.5% and a majority expect one more rate hike in the cycle. The median FOMC participant also now only sees 50 basis points of rate cuts next year to 5.1%. (See: MNI FED WATCH: Proceeding Carefully To Peak Rates)
LONGER LAGS?
Progress on inflation has not been linear and is not evenly distributed across sectors, Collins said. "Inflation in core services excluding shelter, which accounts for over half of our preferred core inflation measure, has yet to show the sustained improvement that would be consistent with price stability."
"So while there have been promising developments, it is too soon to be confident that inflation is on a sustainable trajectory back to the 2% target," she said in her speech to the Maine Bankers Association.
Monetary policy has tightened considerably to date, but economic activity has been resilient and it may be taking longer than usual to see the broader economic impact of monetary policy actions, Collins said. Many firms have been insulated from the rate hikes by extending the maturity of their debt when rates were low.
Now, debt-market activity is picking up and households’ excess savings are declining, while reliance on credit card spending is rising. "This all suggests that business and household spending are likely to become more interest sensitive, helping to temper demand growth and realign it with supply."
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.