Central Bank Watch
FOMC Statement and Press Conference
January 29, 2025
As expected, there was no change made in the 4.25-4.50% federal funds rate target, and balance sheet reduction will continue as previously indicated. Several tweeks were made to the FOMC’s characterization of U.S. economic trends: December’s statement called unemployment stabilized at a low level; this month joblessness is said to have move up but remains […] More
Central Bank Watch
FOMC Preview: U.S. Vital Market Levels Now Versus Those at Earlier FOMC Meetings
January 29, 2025
The federal funds target was cut at the previous three FOMC policy reviews in September, November, and December by a total of 100 basis points (or one percentage point) to 4.25-4.50%. Paradoxically, the 10-year U.S. Treasury yield over that span rose 86 basis points, including 18 bps since the December cut. Fed easing has also […] More
Central Bank Watch
Canadian Interest Rate Cut of 25 Basis points to 3.0% Meets Expectations
January 29, 2025
Today’s Bank of Canada interest rate cut was the sixth straight reduction since last June and brings the cumulative drop to two full percentage points, twice the amount of interest rate relief to date done by the Federal Reserve. The statement explaining today’s rate cut also announced the end of quantitative tightening and accompanied updated […] More
Central Bank Watch
Swedish Interest Rate Cut
January 29, 2025
The Swedish Riksbank policy rate has been reduced by 25 basis points to 2.25%. The new level is its lowest since November 2022 follows five rates since last May. The rate had peaked at 4.0% from September 2023 until May 2024. A statement explaining today’s action defends the need for caution in extending rate reductions […] More
New Overnight Developments Abroad - Daily Update
Dollar Up Further Ahead of FOMC Decision
January 29, 2025
The Federal Reserve is widely expected to initiate a pause in rate cutting. This review is not one that comes with new growth and inflation forecasts, but investors keenly await Chairman Powell’s press conference for possible clarification of future policy moves. The dollar climbed 0.4% overnight against the euro, Swissy and Canadian dollar, 0.6% against […] More
