January 26, 2024
United States:
Fed’s Preferred Core Price Gauge Cools Amid Robust Spending
The Federal Reserve’s preferred gauge of underlying inflation cooled to an almost three-year low even with robust holiday spending, keeping the debate alive over whether officials will soon cut borrowing costs.
The so-called core personal consumption expenditures price index, which strips out the volatile food and energy components, increased 2.9% in December from a year earlier, according to the Bureau of Economic Analysis. From a month ago, it advanced 0.2%.
Europe:
ECB Rate-Setters Preach Patience Without Ruling Out April Cut
European Central Bank officials said they’re in no hurry to lower interest rates, but kept alive the possibility of a move in April that’s become the focus of markets.
Bets on a cut that month intensified Thursday after investors deemed pushback by President Christine Lagarde to be weak. A day later, several of her colleagues stressed patience and a dependence on data in determining next steps. But they shied away from the June timetable they’d looked like converging around as recently as last week.
Asia:
Philippines Central Banker Says Rate Cut Possible This Year
Philippine central bank Governor Eli Remolona said a rate cut is possible “within the year” but added that it’s unlikely for it to happen in the first half.
“Maybe first semester is too soon,” Remolona told reporters on the sidelines of a central bank event on Friday, when asked on the time frame of a possible monetary easing.
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