May 17, 2024
United States:
Fed Officials Suggest Interest Rates Should Stay High for Longer
Several Federal Reserve officials said the central bank should keep borrowing costs high for longer as policymakers await more evidence inflation is easing, suggesting they’re not in a rush to cut interest rates.
Cleveland Fed President Loretta Mester, New York Fed President John Williams and Richmond Fed President Thomas Barkin, speaking separately Thursday, argued it may take longer for inflation to reach their 2% target.
Europe:
ECB’s Schnabel Says July Cut Doesn’t Look Warranted
European Central Bank Executive Board member Isabel Schnabel warned against back-to-back interest-rate cuts in June and July.
“Based on current data, a rate cut in July does not seem warranted,” she told Nikkei newspaper in comments published Friday. “We should look very carefully at the data because there is a risk of easing prematurely.”
Asia:
Philippines Central Bank Tempers Hawkish Tone as High Rates Bite
A day after signaling the central bank’s readiness to pivot to monetary easing, Philippine central bank Governor Eli Remolona said he would like to see easier liquidity conditions as policy may be becoming tighter than necessary.
“We’re beginning to see a negative output gap. That means it’s possible that we’re beginning to be tighter than necessary for taming inflation,” Remolona said in an interview with Bloomberg Television’s Yvonne Man and Stephen Engle on Friday.
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