News 

Turkey’s leadership scrambles to regain investor confidence in its monetary policy

“The central bank on Wednesday convened an extraordinary meeting to hike rates by 300 basis points to 16.5 percent, amid a currency rout and double-digit inflation” writes Natasha Turak for cnbc.com. Turkey may have made a long overdue move to raise interest rates in an attempt to rescue its plummeting national currency, but investors are still in doubt over the independence of its central bank ahead of national elections in June.But asked if this changed his mind on the central bank’s independence, he said, “Not really.”.  Source: cnbc.com Share This:

Read More
News 

Erdogan Needs to Leave Turkey’s Central Bank Alone

“For months, President Recep Tayyip Erdogan has pressed the central bank not to raise interest rates to support the lira” writes Andy Mukherjee for bloomberg.com. Turkey’s central bank has since shifted tack: On Wednesday night, it raised one of its benchmark interest rates from 13.5 percent to 16.5 percent.Turkey’s central bank can effectively fight inflation only if the president leaves it alone.The country’s inflation rate stands at 10.9 percent, well above the central bank target of 5 percent.But if Turkey is to arrest an inflationary spiral, the president will need…

Read More
GBP News 

Chaotic Brexit could force interest rate cut warns Bank of England governor

“A disorderly Brexit could force the Bank of England to cut interest rates again sharply, according to its governor Mark Carney” writes Ben Chu for independent.co.uk. We have the tools we need.” The Bank has drawn criticism from some City analysts and traders for giving confusing signals to markets about the likelihood of a May interest rate rise.He also warned the TSC that the UK economy urgently needs the single market and customs union transition agreed by Theresa May and the EU after March 2019. Source: independent.co.uk Share This:

Read More
News 

Inflation pressure creeps into more food-company earnings reports

“But prices were down, and there was weak demand from food-service companies” writes Ciara Linnane for marketwatch.com. Hormel said strength in refrigerated foods and international markets was offset by weak sales of grocery products, the division that includes Spam and Dinty Moore stew, and weak demand for Jennie-O Turkey products. Source: marketwatch.com Share This:

Read More
News 

I’ve come to believe that ‘are we at full employment?’ is the wrong question

“Counteracting that deeply embedded problem will take not just low unemployment, but really low unemployment, sustained for a number of years” writes Jared Bernstein for washingtonpost.com. It means we’re left with only the structurally unemployed (those not helped by even very low unemployment) and the frictionally unemployed (people between jobs).Wage growth has been famously tepid — that mystery was the point of Krugman’s post.If the unemployment rate continues to fall, say to 3.5 percent or even lower, as some forecasters believe will occur, that’s when we’ll see wages for middle-class…

Read More
News Regulators 

Trade disputes were a big topic at the most recent Federal Reserve meeting, with Fed officials from all over the country saying that business contacts were worried about them.

“The next monetary policy meeting is in mid-June” writes Ap Photo Andrew for washingtonexaminer.com. Investors have been speculating that the central bank might pursue tighter monetary policy, speeding up interest rate hikes, because of signs that commerce is accelerating.Before Wednesday, the Fed hadn’t definitively signaled whether the recent changes in the economy would alter its plans for monetary policy over the next year or so. Source: washingtonexaminer.com Share This:

Read More
News Oil 

Inflation down as cost of living crisis ends, but rising oil prices could bite

“Family finances got another boost in April as inflation fell to its lowest level in just over a year, with the surge of imported price rises fading from households’ weekly shopping bills” writes Tim Wallace for telegraph.co.uk. Annual inflation slid to 2.4pc, the Office for National Statistics said, surprising economists who had expected it to stay at 2.5pc.The drop compares with a peak of 3.1pc in November and takes inflation closer to the Bank of England’s 2pc target.But the Bank of England expects a small rise in costs in the…

Read More
Markets News Regulators 

Five things that could move the markets in the Fed’s minutes release today

“That may not sound very exciting on the surface, but market participants will be poring through the Federal Open Market Committee meeting summary for clues about where the central bank is heading” writes Jeff Cox for cnbc.com. However, Guha said incoming committee members could take a more dovish policy view, setting up possible conflicts ahead. 5.If the minutes indicate that the neutral rate is close, the market will see that as dovish.Krishna Guha, head of global policy and central bank strategy at Evercore ISI, offers a helpful guide on what…

Read More
News Stocks 

U.K. stocks pull back from record high with inflation data on deck

“The inflation report for April is likely to be the highlight of the day” writes Markets Reporter for marketwatch.com. The inflation report is due at 9:30 a.m.The U.K. inflation report due Wednesday morning was also in the spotlight, as the data may weaken or strengthen the case for a Bank of England interest rate rise this summer, analysts said.U.K. stocks fell from an all-time high on Wednesday, as geopolitical risks returned to the fore after U.S. President Donald Trump expressed doubts his high-level meeting with North Korea will happen. Source: marketwatch.com…

Read More