Archive for January 30th, 2019

Deeper Analysis

Powell’s Press Conference

January 30, 2019

Fed Chairman Powell’s press conference reinforced the significant change in monetary policy forward guidance contained in the formal statement released today by the Federal Open Market Committee. He declined to agree that the current hold on further near-term changes in the federal funds target is merely a “pause in a tightening cycle,” conceding instead that […] More

Central Bank Watch

Today’s FOMC Statement on Monetary Policy – Analysis

January 30, 2019

Today’s statement¬†accelerated the shift in forward guidance rate directionality away from a one-sided risk toward less accommodation and greater normalization by introducing an element of two-sided risk and less certainty about the timing and number of increases if such should be deemed appropriate. The prior statement on December 19 had added the bolded word “some” […] More

Central Bank Watch

FOMC Preview

January 30, 2019

The first rule of Federal Reserve chairmen when wearing their communicator-in-chief hat is to do no harm.¬†Chairman Powell failed that test at December’s press conference by placing a very positive spin on U.S. economic trends and appearing not to back away from a baseline expectation that the a couple more interest rate hikes in 2019 […] More

New Overnight Developments Abroad - Daily Update

Brexit Mess, An FOMC Announcement, and Some Weak Data Reports

January 30, 2019

Last night’s British parliamentary votes produced an ill-advised win for Prime Minister May, rejecting a no-deal option or a second referendum in favor of authorization for the prime minister to attempt a renegotiation of parts of her agreement with the rest of the EU. Those governments have repeatedly ruled out renegotiation, so a no-deal Brexit […] More

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