Overseas Headlines – June 10, 2020

United States:

Fed to Consider How Long to Stay at Zero Rates: Decision-Day Guide

“Federal Reserve policy makers will consider penciling in interest rates near zero for this year and next to help the U.S. economy recover from its coronavirus-induced recession. The Federal Open Market Committee is all but certain to keep its benchmark overnight rate in a target range of zero to 0.25% when it wraps up its two-day meeting on Wednesday. The committee will release a statement at 2 p.m. alongside its first quarterly forecasts since December, including a dot plot of its rate projections. Chairman Jerome Powell will hold a video press conference 30 minutes later.”



U.K. Chancellor Sunak Urged to Treat Coronavirus Borrowing as War Debt

“U.K. Chancellor of the Exchequer Rishi Sunak is being asked by members of the ruling Conservative Party to take his time to pay off the record debt the country is racking up as it tries to weather the coronavirus pandemic. By that, they mean decades. With the economy on course for its deepest recession for at least a century, the government is now paying the wages of more than 10 million workers to stave off mass unemployment.”



Asian Central Banks Exhale as Volatile Capital Flows Steady

“Asia’s stabilizing financial markets are allowing the region’s central banks to exhale as currencies find their feet and investor money returns. It’s a crucial reprieve after unprecedented outflows from emerging markets and currency turmoil that followed the coronavirus outbreak. As countries slowly begin reopening and the Federal Reserve likely pauses for now, the pressure is off central bankers in the region to cut interest rates even lower.”



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