Deeper Analysis
FOMC Statement and Press Conference
May 3, 2023
Statement: As markets were expecting, the federal funds target was increased by 25 basis points to 5.0-5.25%. The new target ceiling for the first time matches the level existing when the sub-prime mortgage credit crisis first surfaced in the summer of 2007. The statement justifying today’s action makes only a few modifications from the prior […] More
Central Bank Watch
FOMC Preview
May 3, 2023
Striking the appropriate stance of U.S. monetary policy at this particular juncture is a very complicated undertaking. The FOMC statement will be followed by Chairman Powell’s press conference beginning 30 minutes later at 18:30 GMT. The full effect of extensive policy tightening already undertaken has not been felt, and inflation has fallen significantly below last […] More
Central Bank Watch
Malaysian Central Bank Rate Hike Had Not Been Expected
May 3, 2023
As at the Central Bank of Colombia last Friday and the Reserve Bank of Australia yesterday, officials at Bank Negara Malaysia today sprang a 25-basis point rate hike surprise on unsuspecting market analysts. Malaysia’s central bank policy interest rate now becomes 3.0%, completely reversing the 125 basis points of rate reduction in 2020 when the […] More
New Overnight Developments Abroad - Daily Update
Continuing Strains on Regional Banks Even As Fed Prepares to Hike Policy Rate to 15-Year High
May 3, 2023
An as-expected 25-basis point hike of the federal funds target to 5.00-5.25% would lift the range-floor to its level just before the subprime mortgage debt crisis emerged in the summer of 2007. Investors are hoping for clarified guidance on where Fed monetary policy is likely to go from there, how the Fed plans to protect […] More
