May 20, 2024
United States:
Bostic Says Fed Faces Risks
Just before Barr’s remarks, Atlanta Fed President Raphael Bostic said while the US economy is strong today, the central bank faces significant risks to the outlook.
“The US macro-economy and labor market remain broadly healthy and financial markets are generally stable as well,” he said.
Ongoing risks include “inflation, policy uncertainty, geopolitical risks,” Bostic said. “But then there are also questions concerning the transmission of monetary policy and relatedly whether a restrictive nominal fed funds rate is as effectively restrictive as the Federal Open Market Committee intends.
Europe:
ECB’s Kazaks Warns Against Hasty Interest-Rate Cuts After June
The pace of European Central Bank interest-rate cuts must match the gradual slowdown of euro-area inflation, according to Governing Council member Martins Kazaks.
June seems the right moment to start lowering borrowing costs, but decisions on any subsequent steps are best determined by incoming data, the Latvian official told Bloomberg Adria in an interview.
Asia:
Thailand’s Economic Growth Slows Even as It Beats Estimate
Thailand’s economy grew better-than-expected in the first quarter, fueled by tourism and private consumption, easing urgency on the central bank to respond to the government’s calls for lower borrowing costs. The baht rose.
Gross domestic product in the three months through March increased 1.5% from a year earlier, the National Economic and Social Development Council said Monday. While that’s slower than the 1.7% pace in the fourth quarter and lagged the performance of its peers in Southeast Asia, it was well above the 0.8% median estimate in a Bloomberg survey. One analyst correctly predicted the print, while the rest expected the slowest expansion post-pandemic.
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