Fed’s Bullard sees only one single interest rate hike for the foreseeable future

St. Louis Fed President James Bullard on Tuesday stuck with his view that only a single interest rate increase will be needed for the foreseeable future, despite the strong rebound in U.S. job growth in June. Bullard, a voting member of the U.S. central bank’s rate-setting committee, recently shifted his view of monetary policy, concluding that the United States had entered a persistent period of low growth, low inflation, and low unemployment…

Fed needs to be cautious in hiking rates amid a number of uncertainties: Yellen

Federal Reserve Chair Janet Yellen said Tuesday that the U.S. economy faces a number of uncertainties that require the Fed to proceed cautiously in raising interest rates. In delivering the Fed’s twice-a-year economic report to Congress, Yellen cited a slowdown in job growth in April and May and said the Fed will be watching carefully to see whether the weaker momentum is temporary or a sign of a bigger problem…

UK CPI fell to 0.3% on lower airfares, first drop in seven months

UK inflation fell unexpectedly in April, with lower air fares, clothes and secondhand car prices triggering the first drop in seven months. Britain’s main measure of inflation, the consumer prices index, fell from 0.5% in March to 0.3% last month, according to the Office for National Statistics. Economists had forecast no change at 0.5%. The chancellor’s office seized upon the drop in inflation as a sign UK households were better off within the European Union…

RBA slashes cash rate to 1.75% as Australia unveils somber election budget

Australia’s conservative government unveiled an economic blueprint on Tuesday aimed at creating jobs and growth in “extraordinary times”, just hours after the country’s central bank slashed interest rates to an all-time low. Stealing the thunder from the government’s annual budget, the Reserve Bank of Australia (RBA) cut the cash rate by a quarter percentage point to 1.75 percent, citing surprisingly low inflation and uncertainty about the global outlook…

Yellen’s seemingly dovish comments may set the stage for U.S. Dollar gains

An index of global stocks on Wednesday charged to its highest point since the start of the year, while the dollar weakened, as easing concerns about rising interest rates led investors into riskier assets. Oil prices climbed, as commodities denominated in dollars became more attractive to users of other currencies. U.S. Treasury prices fell with […]

PBOC won’t resort to excessive stimulus but will keep flexible stance, says governor Xiaochuan

China’s central bank won’t resort to excessive stimulus to bolster growth but will keep a flexible stance in the event of an economic shock – domestic or global, Governor Zhou Xiaochuan said while reiterating the authority’s prudent monetary policy. Under the banner of prudent policy, the Chinese central bank has cut interest rates six times since November 2014 and has also reduced the amount of cash that commercial lenders must hold as reserves…

World markets betting on interest rates remaining near zero for up to another decade

World markets may have recovered their poise from a torrid start to the year, but their outlook for global growth and inflation is now so bleak they are betting on developed world interest rates remaining near zero for up to another decade. Even though the U.S. Federal Reserve has already started what it expects will be a series of interest rate rises, markets appear to have bought into a “secular stagnation” thesis floated by former U.S. Treasury Secretary Larry Summers…

U.S. Q4 GDP revised higher; consumer spending rises; inflation picks up

U.S. consumer spending rose solidly in January and underlying inflation picked up by the most in four years, keeping Federal Reserve interest rate increases on the table this year. The upbeat data on Friday added to reports on manufacturing and employment that have suggested economic growth picked up at the start of the year after slowing in the fourth quarter…

Top central bankers face renewed pressure to keep rates low, bolster easy-money policies

Central banks in the U.S., Europe and Japan face renewed pressure to keep interest rates low or expand easy-money policies in response to gyrating stock markets, tumbling oil prices and slow growth in China and elsewhere. In a telling example, European Central Bank President Mario Draghi sent a strong signal Thursday he is prepared to launch additional monetary stimulus in March, a response to persistently low inflation tied to slow growth and falling commodities prices…

Fed’s Williams says four rate hikes is median projection, not baked in the cake

The Federal Reserve is set to raise U.S. interest rates four times this year as long as the economy continues to grow, core measures of inflation stabilize, and unemployment continues to drop, a top Fed official said on Friday. “I don’t need to see anything more than what I see as baseline forecast,” John Williams, president of the San Francisco Fed, told reporters after a speech to the California Bankers Association in Santa Barbara…

Fed’s rate hike was close call for some policymakers amid low inflation

WASHINGTON — Even though the Federal Reserve voted unanimously to raise a key interest rate last month, some policymakers viewed their decision as a “close call” given ongoing concerns about stubbornly low inflation. Going forward, officials believed economic conditions will likely justify “only gradual increases” in its benchmark rate, minutes of the Fed’s meeting released Wednesday showed…

Eurozone recovery, ultra-low inflation should provide ‘tailwinds’ for UK growth, report says

Ultra-low inflation and an upturn for the eurozone will help the UK enjoy solid growth of 2.8% this year despite pre-election jitters, claims an EY ITEM Club report. Chief economic adviser Peter Spencer said the economy was taking the impending vote “in its stride”, with positive “tailwinds” likely to outweigh political uncertainty…

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