Central Bank Watch
FOMC Statement and Forecasts
December 13, 2017
The FOMC met market expectations in raising the federal funds rate by an as-expected 25 basis points to 1.25-1.50%. But the vote was 7-2, with Chicago Fed President Evans joining Minneapolis Fed President Kashkari in favoring no change in the rate. A fairly upbeat statement observes that unemployment (now 4.1%) has declined further and that […] More
Foreign Exchange Insights and Next Week
Updating a Note Posted in December 2015 on Yearend Seasonality of EUR/USD
December 13, 2017
In the early years after the United States adopted flexible dollar exchange rates in March 1973, the U.S. currency an astonishingly consistent pattern of depreciation against the mark during the second half of each December, dropping in thirteen out of fourteen years in one stretch. Like the euro now, the mark was then Europe’s predominant […] More
Central Bank Watch
Central Bank of Iceland
December 13, 2017
Iceland’s Monetary Policy Committee had implemented cuts of its seven-day term interest rate of 50 basis points in August 2016 and of 25 basis points each earlier this year in May, June and October. The collective decline of 125 basis points exactly reversed hikes during 2015, leaving the level at 4.25%. The statement released today […] More
Central Bank Watch
FOMC Preview
December 13, 2017
The Fed announcement and new macroeconomic forecast will be announced at 19:00 GMT (14:00 EST) today. Previous forecasts were published in September. The federal funds rate will almost surely get raised by 25 basis points to 1.25-1.50%, marking the fourth such move since the meeting held a year ago. Chair Yellen will preside over her […] More
New Overnight Developments Abroad - Daily Update
Dollar Slips and Stocks Rise Ahead of Last FOMC Decision of the Yellen Era
December 13, 2017
The dollar fell overnight by 0.7% against the kiwi, 0.6% versus the Aussie dollar, 0.4% relative to sterling, 0.3% vis-a-vis the yen and 0.1% against the euro, Swiss franc and loonie. Core U.S. CPI inflation in November was 0.1 percentage point less than forecast with a rise of 0.1% from October and a 1.7% 12-month […] More
