FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Powell: Don't Expect 75bp Moves To Be Common, Will Remain Data- Dependent

FED
  • Notes activity in housing sector appears to be softening.
    • SEP shows GDP running below 3%.
    • Labor market has remained extremely tight. Improvements in labor market have been widespread; demand strong, supply subdued. We expect supply and demand conditions to come into better balance and temper wage growth.
    • Unemp rate in SEP noticeably above the March projections.
    • Supply constraints have gone on longer than anticipated. Price pressures have broadened.
    • China lockdowns are likely to exacerbate supply chain disruptions.
    • Inflation SEP forecasts upped this year; participants continue to see risks to inflation as weighted to the upside.
    • Highly attentive to risks inflation poses to our dual mandate.
    • Policy will continue to adapt.
  • Coming out of the May meeting, 50bp considered appropriate; but we said we would be nimble; since then inflation has again surprised to the upside and some expectations have risen. In response, Fed decided a larger increase was warranted, continuing the approach of expeditiously hiking. This will help ensure longer-term infl expectations remain well-anchored.
  • Goes over the Dot Plot, says rates remain above the longer-run dot in 2024 (and it's not a committee forecast).
  • Will be data dependent. Don't expect 75bp moves to be common. Either 50 or 75 more appropriate at next meeting
Energy BulletsCommodities
Energy BulletsCommodities

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.