Overseas Headlines – July 9, 2024

July 9, 2024

United States:

Powell Says More Good Inflation Data Would Boost Fed Confidence

Federal Reserve Chair Jerome Powell said “more good data” would strengthen confidence that inflation is moving down toward the US central bank’s 2% target, and recent readings point to “modest further progress” on prices.

In testimony prepared for a Senate hearing Tuesday, Powell warned that lowering interest rates too little or too late could put the economy and the labor market at risk.




ECB’s Panetta Plays Down High Services Inflation Concerns

The European Central Bank shouldn’t be overly worried about stubborn services inflation and still-robust wage growth, Governing Council member Fabio Panetta said.

“Concerns are not unwarranted, but they need to be put into perspective, as services prices tend to move differently from those of goods,” the Bank of Italy governor said Tuesday.




Japan’s Megabanks Are Said to Seek Deep Cuts to BOJ Bond Buying

Japan’s largest banks called on the Bank of Japan to make deep cuts to its monthly bond purchases during hearings of market participants at the central bank, according to people who attended.

One megabank said the BOJ should move early to make sharp cuts to its bond buying, while another major bank recommended an eventual reduction to monthly purchases of ¥1 trillion ($6.2 billion), the people said. A third megabank said the buying should be halved from the current monthly level to ¥3 trillion yen, the people added.



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