Overseas Headlines – August 03, 2021

United States:

Fed Decision, U.S. Peak, American-Made Products: Eco Day

“It’s Federal Reserve decision day. With the delta variant posing a growing risk to the U.S. economy, Fed Chair Jerome Powell and his colleagues are likely to emphasize patience on scaling back the central bank’s massive policy support. Fed wordsmiths will consider adjustments to the policy statement at Wednesday’s FOMC meeting, notably on inflation language and virus risks, according to Bloomberg Economics’s Andrew Husby and Eliza Winger.”



The 1.9 Million Reasons the BOE Will Echo Fed’s Rate Patience

“Bank of England officials who favor patience on scaling back stimulus will likely dominate the policy discussion this week, with risks to the labor market recovery outweighing a surge in inflation. With almost 1.9 million people still on furlough, the Monetary Policy Committee will signal Thursday that it’s in no hurry to cut its 875 billion-pound ($1.2 trillion) bond-buying plan. It’s also unlikely to be swayed by the economic rebound, expected to be the fastest among the Group of Seven this year.”



Singapore Central Bank Head Takes On Thorny Political Issues

“In the last few weeks, the managing director of the Monetary Authority of Singapore has gained attention for his personal views on some politically charged topics, echoing a similar evolution among his central banking peers as they address the world beyond money supply. In a series of recent lectures as a visiting scholar at a local university’s think tank, Ravi Menon has tackled several top issues facing policy makers in the city-state and globally: a possible wealth tax and minimum wage to address inequality; the economic case for foreign labor and immigration; and the need for a higher carbon tax to meet climate-change commitments.”




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