Fed Mulls Shift in Bond Buying Program: FOMC Decision-Day Guide
“Federal Reserve Chair Jerome Powell and his colleagues, facing an economy slowing as the Covid-19 outbreak worsens, are considering whether to alter their asset purchase program to provide more support for growth. The Federal Open Market Committee is all but certain to keep its benchmark overnight interest rate in a target range of 0% to 0.25%, where it’s been since March 15 to help soften the pandemic’s blow. The panel will release a statement and economic forecasts at 2 p.m. Wednesday. Powell will hold a press briefing 30 minutes later.”
BOE Stimulus Plans Can’t Quell Economic Pain in a No-Deal Brexit
“Bank of England officials hold their final scheduled policy decision of a tumultuous year still unsure whether the U.K. will get a Brexit trade deal, and knowing there’s little they can do to soothe the economic pain if it doesn’t. Economists expect monetary policy settings to remain as they are on Thursday, while acknowledging that could change if no-deal becomes a reality before then. The BOE last boosted stimulus, to counter the prolonged coronavirus crisis, just six weeks ago.”
Japan’s $707 Billion Stimulus Hinges on Elderly Spending Money
“Japanese Prime Minister Yoshihide Suga has briefly put virus containment ahead of the economy by temporarily halting a nationwide travel campaign aimed at spurring spending among consumers including the elderly. The septuagenarian premier needs to get more people of his own generation spending if he wants to keep the economy’s recovery on track over the coming months. People over the age of 65 make up 29% of the population and account for almost 40% of the consumer spending that is the biggest driver of Japan’s economy.”
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