Overseas Headlines – December 30, 2020

United States:

Fed’s Policymaking Panel Tilts Even More Dovish in 2021 Rotation

“Changes to the Federal Reserve’s interest-rate setting panel will make the U.S. central bank even less likely to tighten monetary policy in the new year, no matter how much of a jolt the economy gets from the rollout of Covid-19 vaccines. In the annual rotation of voters on the Federal Open Market Committee, the four regional Fed presidents who receive that privilege in 2021 will be marginally more dovish — or inclined to favor easy policy — than the four they replace. The most notable shift comes as Chicago’s Charles Evans, one of the most predictably dovish officials, takes the vote held this year by Cleveland’s Loretta Mester, a relatively hawkish figure on the panel.”



U.K. Housing Boom Pushes Price Growth to Six-Year High

“U.K. house price growth rose to a six-year high in December, rounding off a strong 2020 for the market that defied a wider economic downturn. Values climbed 7.3% from a year earlier to an average of 230,920 pounds ($312,800), Nationwide Building Society said Wednesday. They increased 0.8% from a month earlier.”



China’s Central Bank Reiterates It Will Avoid Sharp Policy Exit

“China’s central bank reiterated its pledge to avoid a sudden shift in monetary policy while it maintains necessary support for the economy’s recovery. The main priority is stability, the People’s Bank of China said in a statement late Tuesday after its quarterly policy meeting, vowing to “make no sharp turn” on policy. Monetary policy should be flexible, targeted, reasonable and appropriate, it said, reiterating comments from the Communist Party’s recent Central Economic Work Conference.”




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