Fischer Echoes Yellen Seeing Economy on Fed’s Rate Hike Path
Federal Reserve Vice Chairman Stanley Fischer said the central bank is nearing its dual goals and seems to be headed for its anticipated monetary policy path, which officials’ December projections put at three increases this year. “I don’t want to give you numbers on two or three, but this is consistent with what we had thought should be happening around now — that is that we’d be moving closer to the 2 percent inflation rate, and that the labour market would continue to strengthen,” Fischer said Thursday on Bloomberg Television in an interview with Tom Keene. “If those two things happen, we’ll be on the path that we more or less expected.”
Italy Approves $21 Billion Fund to Shore Up Its Troubled Banks
Italy’s parliament approved a law to plow as much as 20 billion euros ($21 billion) into Banca Monte dei Paschi di Siena SpA and other troubled lenders as part of the nation’s efforts to revamp its banking industry. The lower house gave its final approval to the legislation Thursday, converting the decree law passed by Prime Minister Paolo Gentiloni’s cabinet in December. It includes emergency liquidity guarantees and capital injections for struggling lenders in compliance with state aid rules. Banks will be able to request precautionary recapitalizations that would see some bondholders take a hit.
Brazil economic activity slides for 8th straight quarter
Economic activity in Brazil fell for the eighth straight quarter at the end of 2016, capping the second year of a severe recession, central bank data showed on Thursday. It shrank 0.36 percent in the fourth quarter from the third after seasonal adjustments following a 0.39 percent fall in the previous quarter, according to the central china bank’s IBC-Br index, considered an advance indicator of gross domestic product data. Activity fell 0.26 percent in December from November after an increase of 0.10 percent in the previous month. In 2016, economic activity plunged 4.55 percent following a drop of 4.07 percent in the prior year, the bank said.