News Regulators 

The Latest: ECB did not discuss sudden end to stimulus

“The purchases will be cut to 30 billion euros ($35 billion) from 60 billion euros in January and extended through September, and longer if needed” reports foxbusiness.com. Draghi spoke after the ECB kept its key interest rates and stimulus programs on hold.The bank decided in October to reduce the purchases to 30 billion euros ($35 billion) a month from 60 billion euros and to extend them at least until September, or longer if necessary.European Central Bank President Mario Draghi says the bank is “closely monitoring” financial stability risks that could…

Read More
News Regulators 

Watch here for ECB hints to the unwinding of QE: Live blog

“The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases” writes Anneken Tappe for marketwatch.com. The Eurosystem will reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary.At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing…

Read More
News Regulators 

ECB leaves rates at record low, reiterates dovish guidance: live blog

“The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases” writes Anneken Tappe for marketwatch.com. The Eurosystem will reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary.At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing…

Read More
News Regulators 

Steady as she goes: ECB to keep money taps wide open

“Even the doves at the ECB will feel uneasy about extending asset purchases beyond September 2018,” Berenberg economist Florian Hense said” reports foxbusiness.com. But a benign 2020 projection could rekindle a simmering debate about the end of asset buys.Some policymakers argue that the ECB should increase the proportion of private sector purchases by keeping those volumes steady when sovereign purchases are cut from January.In October several influential policymakers argued that the ECB should amend its guidance, cutting the direct link between inflation and bond buys. Source: foxbusiness.com Share This:

Read More
News Regulators 

The Fed has raised interest rates again — here’s how it happens and why it matters

“After the Fed lifts the fed funds rate, the baton is passed to banks” writes Akin Oyedele for businessinsider.com. When the fed funds rate rises, banks also hike the rates they charge consumers, so borrowing costs increase across the economy.When the Fed raises rates, banks are less incentivized to lend, since they are earning more to park their cash in reserves.In July, the last time the Fed raised rates, it set the repo rate at 1% and the IOER at 1.25%.The effective fed funds rate, which is what banks use…

Read More
News Regulators 

Fed lifts interest rates but sticks to go-slow approach as Yellen era nears end

“Stocks keep hitting record highs, for instance, and interest rates remain quite low despite the five Fed rate hikes since late 2015” writes Senior Economics Reporter for marketwatch.com. Many economists said there needs to be more evidence of price pressures to cajole the Fed to raise rates more aggressively in 2018.The central bank can afford to cling to a go-slow strategy because of surprisingly low inflation.Fed governor Jerome Powell will take over the helm of the central bank from Yellen in early February.Two senior officials, Minneapolis Fed President Neel Kashkari…

Read More
Markets News 

Text of December FOMC statement

“Voting against the action were Charles L. Evans and Neel Kashkari, who preferred at this meeting to maintain the existing target range for the federal funds rate” reports marketwatch.com. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal.In view of realized and expected labor…

Read More
News Regulators 

Dollar adds to losses after CPI report; Investors await Fed decision

“Then, the November inflation report showed a slowing of core consumer price growth, which exclude volatile items such as gasoline, while headline inflation was in line with forecasts” writes Markets Reporter for marketwatch.com. Traders were also looking ahead to the Federal Reserve decision later in the day at 2 p.m.Down under, the Australian and New Zealand dollar are also stronger on the back of the falling greenback. Source: marketwatch.com Share This:

Read More
News 

Gasoline prices lift US consumer inflation 0.4 percent

“Over the past year, overall consumer inflation is up 2.2 percent and core inflation is up 1.7 percent” writes The Associated Press for seattletimes.com. Excluding volatile food and energy prices, so-called core consumer inflation rose a modest 0.1 percent in November.WASHINGTON (AP) — Surging gasoline prices pulled U.S. consumer inflation up 0.4 percent in November.But the tight job market has yet to generate significant wage growth, which would push inflation higher. Source: seattletimes.com Share This:

Read More
News Regulators 

The Fed is set to raise interest rates again — here’s how it happens

“After the Fed successfully lifts the fed funds rate, the baton is passed to banks” writes Akin Oyedele for businessinsider.com. When the fed funds rate rises, banks also hike the rates they charge consumers, so borrowing costs increase across the economy.The Fed tries to influence that charge — called the federal funds rate — and it’s what they’re targeting when they raise or cut rates.When the Fed raises rates, banks are less incentivized to lend, since they are earning more to park their cash in reserves.In July, the last time…

Read More