July 17, 2024
United States:
Fed’s Williams Says Recent Inflation Data Positive, More Needed
Federal Reserve Bank of New York President John Williams said inflation data over recent months has been encouraging, but he wants to see more evidence in the coming months to gain the confidence needed to lower borrowing costs.
Speaking in an interview with the Wall Street Journal published Wednesday, Williams said the central bank will learn “a lot” between July and September, a month when policymakers are widely expected to reduce interest rates.
Europe:
ECB’s Inflation Endgame at Risk Over Productivity Challenge
A key plank in the European Central Bank’s case for inflation returning to 2% faces growing skepticism — potentially damping hopes for sustained cuts in interest rates.
For consumer-price gains to retreat to the ECB’s target as envisaged late next year, an increase in productivity must accompany moderations in workers’ pay and company profit margins.
Asia:
China Central Bank Uses Hedge Fund Tactic to Tame Bond Bulls
China’s central bank is readying a bold new experiment in global monetary policy — taking a leaf out of the hedge fund playbook and arranging to short sell bonds.
As President Xi Jinping and his top Party colleagues prepared for this week’s once-in-five-year Third Plenum to chart the broad economic path ahead, Governor Pan Gongsheng’s People’s Bank of China has been busy lining up “hundred of billions” of government bonds it could sell to prevent a bubble forming in the nation’s $4 trillion debt market.
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