MNI BRIEF: Inflation Expectations Mixed In May - NY Fed Survey

MNI BRIEF: ECB Cut On Disinflationary Process Trust-Centeno

CANADA MAY JOBS +26.7K VS FORECAST +20K, PRIOR +90.4K

MNI BRIEF: HNB Flash Analysis Sees May CPI, Core At 4.0%

MNI BRIEF: Mexico Inflation 4.69% In May, Below Consensus

MNI China Daily Summary: Friday, June 7

US Treasury Auction Calendar

IP Weak In April, With Surveys Suggesting Little Respite Ahead

EZ/UK T-Bill Calendar: Spain, Belgium Auction on Tuesday

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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

Powell On Credit Tightening & Further Hikes

FED
  • Q: In March you mentioned credit tightening could be equal to 1 or more rate increases, has that changed?
  • A: I followed that up by saying it's impossible to have a precise estimate, but in principle that's the idea. We've been raising rates and that raises the price of credit and restricts credit, and when banks raise their credit standards that also tightens. It isn't possible to cleanly translate between one and the other although we're trying that.
  • It complicates the task of achieving a restrictive stance. But conceptually, we think that interest rates, in principle we won't have to raise rates quite as high as we would have if this had not happened. The extent of that is so hard to predict. We don't know how large and how long they will take to be transmitted. That's what we will be watching carefully to find out.
  • There's a lot of data on lending and we'll factor that into our decision making.
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.