Central Bank Watch
Central Bank of Brazil’s Selic Interest Rate Lowered 50 basis points to 5.50%
September 18, 2019
Copom, the monetary policy committee at Brazil’s central bank engineered its second 50-basis point interest rate cut of 2018 on Wednesday, but this was only the latest in an extensive easing cycle. The Selic rate was at 14.25% prior to October 2016, 875 basis points higher than the new level. All but 200 basis points […] More
Deeper Analysis
Takeaways from Jerome Powell’s Press Conference
September 18, 2019
Fed Chairman Powell didn’t say anything particularly surprising at today’s press conference. His answers to a wide rage of questions, some on awkward topics like the one-directional abusive criticism of the Fed coming from the White House, were predictable on several levels. His comments adhered to long-established Fed stances such as the data dependency of […] More
Uncategorized
FOMC Statement and Updated Forecasts
September 18, 2019
The federal funds target range as expected was lowered another 25 basis points to 1.75-2.0%. In the opening paragraph of the FOMC statement that describes economic conditions, investment and export demand were dowgraded to “have weakened,” while personal consumption was upgraded to a stronger pace. Similar to the statement at end-July when the initial easing was […] More
Central Bank Watch
FOMC Preview
September 18, 2019
In the seven weeks since the Federal Open Market Committee authorized the first federal funds target decline since December 2008, the 10-year treasury yield had dropped 27 basis points on balance, but there has been scant net change in EUR/USD, dollar/yen, U.S. share prices or the price of oil. The rate reduction on July 31 […] More
New Overnight Developments Abroad - Daily Update
Fed Expected to Announce Interest Rate Cut Today But Forward Guidance Uncertain
September 18, 2019
Investors will be focused not on what actions the Fed implements today but rather on what is said about future monetary policy where FOMC voting members appear divided. Macroeconomic forecasts will be updated, and Chairman Powell will hold a press conference afterward. The dollar has been decently bid today, with gains overnight amounting to 0.4% […] More
