Archive for July 14th, 2022

Deeper Analysis

Front-Page Graph of U.S. CPI Inflation in Today’s NYT Illustrates Big Difference in Current Spike from the 1970s Experience

July 14, 2022

It’s a difference noted before in this blog. The inflation that former Fed Chairman Volcker eventually slew was felt in three, each larger than the previous one and altogether encompassing fifteen years. The first wave from CPI inflation of a half-percent to a peak around 6% played out over five years. Inflation then receded back […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: July 16 – 22, 2022

July 14, 2022

Central Banks: Monetary policy reviews are scheduled next week at the European Central Bank and Bank of Japan and in China, Indonesia, Russia, Turkey, South Africa and Brazil. Central Bankers speaking publicly in the period include ECB President Lagarde, BOJ Governor Kuroda, and Reserve Bank of Australia Governor Lowe. The Bank of Japan’s quarterly Outlook […] More

Central Bank Watch

Filipino Central Bank Rate Hike

July 14, 2022

Officials at the Central Bank of the Philippines had not scheduled a policy review for today. But with Filipino CPI inflation jumping 0.7 percentage points to 6.1% in June, a 92-month high and over 2 percentage points above the target corridor of 2-4%, they felt they could not delay intensifying the monetary tightening cycle any […] More

Central Bank Watch

Central Bank of Chile Rate Hike

July 14, 2022

Chilean monetary officials had cut their interest rate twice in March 2020 by a total of 125 basis points to 0.50% but began to raise the rate in July 2021 and did so in four moves by a total of 350 basis points by December. Yesterday’s unanimously decided increase to 9.75% from 9.0% was the […] More

New Overnight Developments Abroad - Daily Update

Revolting Developments but the Dollar Rally Plays On and Central Bankers Scramble to Catch Up

July 14, 2022

Not for the first time this year, JP Morgan CEO Jamie Dimon’s candid remarks about a deteriorating global economic outlook has fanned investors’ flight to safety. The litany of problems includes soaring inflation, tighter monetary policies, Russia’s relentless destruction of Ukrainian infrastructure, other geopolitical tensions, and weakening business and consumer confidence. He could have added […] More

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