US PCE inflation higher than expected in December
The Fed is in no hurry to cut rates. December’s PCE inflation reinforces that stance, with the headline rate ticking up to 2.6 per cent on an annual basis versus 2.4 per cent in November.
Monetary policy is a sideshow now
Fiscal policy and monetary policy are always vying for top spot on the market’s list of concerns. For now, there is little to see at the Fed. What the market needs is clarity on the fiscal front.
The Fed’s Preferred Inflation Measure Ticked Up Slightly in December
The central bank needs to see further progress on inflation or weakness in the labor market to resume interest rate cuts.
Trump’s victory could be disinflationary (eventually)
After experience of Biden administration, fighting price rises likely to be political priority over targeting economic growth
Fed hold rates steady, sees inflation as 'elevated,' as Powell declines comment on Trump
The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue.
Federal Reserve holds interest rates steady as inflation remains above 2%
The Federal Reserve opted to leave its benchmark interest rate unchanged in its first policy meeting since President Trump's inauguration.
Fed leaves rate unchanged, points to stubborn inflation
The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue.
Market talk
The US labour market is also in focus next week with an update on hires and fires over December on Tuesday. Payroll data for January also arrives on Friday with 170,000 non-farm jobs expected to have been added, according to a Reuters poll.
Japan to loosen rules on rice reserves as prices soar
Japan is set to loosen the rules controlling the country’s tightly guarded rice reserve for the first time as domestic prices of the grain soar to the highest levels on record.
ECB delivers quarter-point cut and little change in tone
ECB cuts the deposit rate by a quarter point to 2.75 per cent as expected and offers little shift in tone from December as it continues to move policy away from restrictive territory
Bank of Japan raises policy rate to 0.5% and signals further increases
In a well-trailed move, the Bank of Japan on Friday raised the policy rate by 0.25 percentage points, taking it to 0.5 per cent — its highest level in nearly two decades.
Bank of Japan expected to raise rates on Friday with inflation and wages ‘on path’
The Bank of Japan is likely to raise rates at its January 24 meeting following recent supportive comments from BoJ governor Kazuo Ueda and deputy Ryozo Himino.