U.S. producer prices decline again in February, point to tame inflation

(Reuters) – U.S. producer prices fell in February for a fourth straight month, pointing to tame inflation that could argue against an anticipated June interest rate hike from the Federal Reserve. Other data on Friday showed a decline in consumer sentiment in early March, as harsh winter weather left households with high utility bills and disrupted shopping and general business activity…

U.S. inflation up 0.7% in December, well below the Fed’ds 2% target

The Federal Reserve’s preferred inflation gauge notched its lowest year-over-year increase since just after the recession, complicating the calculus for the central bank on when to lift short-term interest rates from near zero. The price index for personal consumption expenditures was up 0.7% in December from a year earlier, the Commerce Department said Monday…

U.S. January consumer sentiment hits highest level in 11 years

(Reuters) – U.S. consumer sentiment rose in January to its highest level in 11 years on better job and wage prospects, a survey released on Friday showed. The Thomson Reuters/University of Michigan’s final January reading on the overall index on consumer sentiment came in at 98.1, its best showing on a final basis since January 2004 and the latest in a string of increases since August…

UK inflation falls to 0.5% in December, weakest since May 2000

LONDON—The U.K. experienced the slowest annual growth in consumer prices in more than a decade in December, giving a boost to British workers ahead of a general election in May. The Office for National Statistics said Tuesday the annual rate of inflation fell to 0.5% in December, from 1% a month earlier…

Can the U.S. economy sustain its momentum in 2015, given global risks?

Economists often disagree, but they share a broad consensus on one point: The U.S. economy is among the world’s best off as 2015 begins. Where there’s less agreement is whether this is as good as it gets. Pessimists cite mounting risks from overseas, especially deflation threats in many countries. Optimists point to momentum from a […]

Inflation-targeting works, but other methods may be more effective: Fed’s Williams

(Reuters) – A top Federal Reserve policymaker on Friday said global central banks have had good success with inflation-targeting, but should consider other methods that may work better in the face of low interest rates and the risk of asset bubbles…

Fed says labor market is strengthening, ends QE stimulus as planned

WASHINGTON — The Federal Reserve cited an improving economy Wednesday as it ended its landmark bond-buying program and pointed to gains in the job market — a key condition for an eventual interest rate hike. The Fed did reiterate its plan to maintain its benchmark short-term rate near zero…

US FOMC Interest Rate | October 29, 2014 | Currency Trading

US FOMC Interest Rate decision today is the main focus of the week, especially considering that the Fed is likely to end QE in this meeting and may even provide new forward guidance language, which is nothing short of trend changing, it’s hard not to pay close attention to this release.  Let’s take a quick […]

U.S. dollar strength putting downward pressure on inflation: Fed’s Evans

(Reuters) – A stronger dollar and weak global inflation are putting downward pressure on the pace of price increases in the U.S. economy, posing a challenge for the Federal Reserve, a top Fed official said on Saturday. “The dollar, it puts downward pressure on our inflation,”…

UK CPI y/y | October 14, 2014 | Currency Trading

UK CPI y/y release could provide the much needed catalyst for the Pound Sterling.  If we get a strong release, we should see plenty of market support whereas a weak release will cause GBP to consolidate further and drive rate hike speculation further away. 4:30am NY Time UK CPI y/y Forecast 1.4% Previous 1.5% DEVIATION: […]

Fed’s Williams: Fed has tools to fight inflation, has not ruled out selling assets if needed

(Reuters) – A top Federal Reserve official said on Thursday that while the Fed does not expect its large balance sheet to ignite inflation, if its forecasts are wrong the U.S. central bank has the tools to keep inflation from rising out of control. San Francisco Fed President John Williams told a group of business leaders in Las Vegas…

UK CPI y/y | September 16, 2014 | Currency Trading

UK CPI y/y release will be widely watched especially with the Scotland Referendum scheduled on the 18th.  A weak release will definitely speed up the selling pressure on GBP, but a stronger release may not have the same level of impact… 4:30am NY Time UK CPI y/y Forecast 1.5% Previous 1.6% DEVIATION: 0.3% (BUY GBP […]

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