Central Bank Watch
Speed of Fed Tightening Lifted
June 15, 2022
A lack of progress toward lower U.S. inflation and various measures showing upward drift in expected inflation convinced FOMC officials to boost the federal funds rate by 75 basis points today. This follows increases of 25 basis points in March and 50 bps in May, and the decision was taken in spite of a risk […] More
Central Bank Watch
FOMC Preview
June 15, 2022
The early May FOMC meeting issued forward guidance to expect 50-basis point interest rate hikes both today and at the next policy review in late July, and that road map was the accepted wisdom until the last few days when moves of 75 basis points suddenly became the new normal. With hindsight, the FOMC should […] More
New Overnight Developments Abroad - Daily Update
ECB Steals Some Attention from the Fed
June 15, 2022
An unscheduled meeting of the European Central Bank Governing Council has been underway for a bit over two hours to consider the bond market selloff and increasing fragmentation of that market that saw a 242-basis point spread at the close of Tuesday trading between 10-year Italian and German sovereign debt yields. That hasn’t be so […] More
