MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Powell Asked Whether The Fed Anticipates 25BP Increments Going Forward

FED
  • Q: Do you anticipate 25bp increments going forward? How to determine when to stop?
  • A: Now that we're coming to the end of this year we've raised 425bp this year, into restrictive territory, it's not so important how fast we go - important to think what is the ultimate level. Then at a certain point, the question will become how do we remain restrictive. That applies to February as well. We'll make that decision based on the incoming data, where we see financial conditions..
  • Ultimately the Q about how high to raise rates looks at progress of where inflation and financial conditions are. We have an assessment that we're not as restrictive enough even with today's move, we laid out our individual assessments of what we would need to do to get there.
  • Powell then goes through his CPI in "three buckets" from the Brooking speech, says goods inflation coming down as expected; housing services "very very high and will continue to go up... but the rate for new leases is coming down so that inflation will come down sometime next year"; the third is non-housing related core services "the biggest cost by far in that sector is labor and we do see a very, very strong labor market... so the biggest part is likely to take a substantial period to get down."
  • "There is an expectation really that the services inflation will not move down so quickly so we may have to raise rates higher to go where we want to go. That's why we're running down the high rates and why we're expecting they'll have to remain high for a time. "
Energy BulletsCommoditiesFOMC Calendar Market News
Energy BulletsCommoditiesFOMC Calendar Market News

To read the full story

Close

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.