DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

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

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

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Question On How Far Into Restrictive Territory Rates Need To Go

FED
  • Q: How does the FOMC see declining inflation / commod prices? How far into restrictive territory will rates need to go?
  • A: We've been saying we would move expeditiously to get to the range of neutral. I think we've done that now, at 2.25-2.5 and that's what we think is neutral.
  • Our focus will continue to be on using our tools to bring demand back into better balance with supply. Ongoing rate hikes will be appropriate and we'll make decisions meeting by meeting.
  • We're looking at incoming data. Are we seeing the slowdown in econ activity that we think we need? There is some evidence that we are, at this time.
  • Of course we'll be looking closely at inflation. We'll be looking at both headline and core. And asking, do we see pressures declining, do we see readings coming down? The question we'll be asking is whether the stance of policy is sufficiently restrictive to bring inflation back to target.
  • These hikes have been large and have come quickly and it's likely their full effect hasn't been felt by the economy. There's probably significant additional tightening in the pipeline.
  • I think the FOMC broadly feels we need to get policy to a moderately restrictive level.
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.