The outstanding labour market performance in the US has triggered widespread speculation of a Fed rate hike as early as September. Nonetheless, most new jobs are part-time, while the hourly wage increase lags well behind its pre-crisis pace.
Fed’s monetary policy
LONDON | BNP Paribas | Even after a very dovish FOMC meeting…the USD reaction has been muted. BUT the USD has strengthened against the EM currencies…
CANCUN (MEXICO) | A long time ago, in a galaxy far, far away…” the Federal Reserve did not even announce its interest rate movements. Fed watchers had to infer the lending policy of the world’s most powerful central bank just by painstakingly perusing the documents–release, obviously, in paper–of the Fed’s open market operations.
SAO PAULO | June 20, 2015 | By Marcus Nunes via Historinhas | US 2016 Republican Presidential Candidate Jeb Bush has set his presidential goal at 4 percent growth and 19 million new jobs. To do that, he would first have to “recruit” the Fed. Unfortunately, if the Fed acquiesced bad things would happen.
The Corner | June 17, 2015 | The Federal Open Market Committee’s policy statement, due to be released today at 1800 GMT, is widely expected to signal a first rates’ hike in September. For the first time in eight years the outcome of the meeting is not constrained by the “forward guidance” commitment. Is the US economy healthy enough?
CAMBRIDGE | June 15, 2015 | By Prof. Jagjit S. Chadha via Deutsche AWS | Could rising rates choke off the recovery or have post-crisis wounds healed sufficiently for the global system to take tightening policy in its stride?
MADRID | May 12, 2015 | By Ana Fuentes | Easy money and negative yields are fueling an unprecedented, dangerous bubble: prices of assets, stocks, bonds and houses are more inflated than ever. Central bankers are noting (and warning against) it. Some market makers are following suit and recommend to reduce exposure to risk.
MADRID | April 9, 2015 | By JP Marín Arrese | As the recovery pace of the US economy softens, FED policy makers are growing increasingly reluctant to raise rates too early. The March FOMC minutes released yesterday reveal they could only agree on deleting “patience” when referring to the foreseen tightening of the monetary stance. Members seem split on the timing, with many openly advocating postponing the move until the end of this year or even into 2016.
MADRID | February 26, 2015 | By JP Marín Arrese | The FED is back in business after years of loose monetary policy aimed at redressing an ailing economy. With the business climate markedly improving, the time is ripe to raise rates. Yet, Janet Yellen has repeatedly warned against a swift hike, instead emphasising the need for patience until the upward trend is solidly anchored. In her testimony before the Senate Committee, she noted that policy would only cover the next two FOMC meetings, sparking speculation that the move could well start in June.
SAO PAULO | By Marcus Nunes via Historinhas | Why? According to the “accountants”: “It’s no secret that spending cuts (and tax hikes) have retarded America’s growth for the past four years. But data from the Bureau of Economic Analysis suggests that the era of austerity may finally have ended.” See the “flagship chart” above.