Central Bank Watch
FOMC Statement and Powell’s Press Conference
March 22, 2023
A 25-basis point hike of the federal funds target range to 4.75-5.0% is in line with analyst expectations. The schedule for reducing holdings of Treasury securities, agency debt ad agency mortgage-backed securities likewise remains the same, meeting street expectations. An inserted paragraph addresses the recent banking system strains: The U.S. banking system is sound and […] More
Central Bank Watch
FOMC Preview
March 22, 2023
Since the February 1 FOMC rate hike of 25 basis points, the dollar has advanced 2.7% against the yen and 1.8% versus the euro. The 10-year Treasury yield is now 18 basis points more elevated than then. The DOW and price of WTI oil have dropped by 4.6% and 8.6%, and the price of bitcoin […] More
Central Bank Watch
Full Percentage Point Hike of Iceland’s Policy Interest Rate
March 22, 2023
Whereas the Federal Reserve is expected to raise its interest rate only slightly today, the Central Bank of Iceland’s seven-day term deposit rate was lifted by a full percentage point to 7.5%. That increment represents a doubling of the previous 50-basis point hike last month, which in turn was double the 25-basis point moves in […] More
New Overnight Developments Abroad - Daily Update
FOMC Day, And Inflation Reports Around the World Aren’t Cooperating
March 22, 2023
Financial markets have positioned for a 25-basis point hike of the federal funds rate later today, which would represent a compromise between conceding the the task of restoring in-target U.S. inflation is still far from accomplished and concern over the way that mid-sized banks have handled the considerable interest rate increase over the past year. […] More
