May 10, 2024
United States:
Fed’s Daly Says ‘More Time’ Needed for Restrictive Rates to Work
Federal Reserve Bank of San Francisco President Mary Daly said interest rates are currently restraining the economy, but it may take “more time” to return inflation to the central bank’s goal.
“We are restrictive, but it might take more time to just bring inflation down,” Daly said Thursday during a moderated discussion at George Mason University’s Mercatus Center, echoing remarks.
Europe:
ECB June Rate Cut ‘Most Likely’ If Outlook Holds, Elderson Says
The European Central Bank will “most likely” lower borrowing costs when it meets in June — should the outlook for consumer prices be confirmed by fresh quarterly forecasts, Executive Board member Frank Elderson said.
“This is a projection meeting so we will look at projections,” he told Bloomberg in Rome on Friday. “If these projections were to solidify the confidence levels that we see today, I think that we will most likely take a step.”
Asia:
China’s Central Bank Warns on Risks in Government Bond Rally
China’s central bank issued another veiled warning on a months-long government bond market rally, underlining its discomfort with decades-low yields that have weighed on the nation’s currency.
The People’s Bank of China said “long-term government bond yields will better match the future economy’s improving trend” and that “bond market supply and demand will likely become more balanced,” in a special section of its first-quarter monetary policy report published Friday. It cited factors including accelerating issuance of sovereign bonds.
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