September 29, 2023

The Catholic Transcript

Complete News World

From US Futures Point to Wall Street losses this Thursday

BCs in Europe and the United States do not agree with the policy of pressure in other countries

It decided to immediately stop buying new bonds and began to predict that interest rates would rise in the second or third quarter of next year.

Bank of England Governor Andrew Bailey has said the British central bank is ready to fight back. This week your Monetary Policy Committee may give you some indications of your intentions. The currency has ceased to support the yield target for its government bonds, indicating that it is abandoning the easing of the currency’s face.

But two of the world’s leading central bankers, President Jerome Powell and European Central Bank President Christine Lagarde, think they know more than anyone else.

Canadian BC enters “reinvestment phase”; The RBA may reduce the target Yield This week

Although the central bank is expected to announce the launch Tapping At his monetary policy meeting, Powell hopes that inflation will ease and that the US Federal Reserve will no longer need to raise interest rates. Lagarde of the ECB said there was no need to raise interest rates by the end of 2022, although he acknowledged that board members had talked too much about it at their meeting last week.

The sudden announcement by the Canadian central bank that it would enter the “reinvestment phase” of its asset purchases – that is, buy government bonds only to replace mature ones – came as a shock. The situation will end “in the middle of the 2022 quarters”.

After the failure of the Australian BC to stop the bond yield increase of 0.1% in April 2024 – Yield Reached 0.8% on Friday – Investors are now hoping the RBA can formally withdraw its earnings target at its board meeting this week. Yours is scheduled for this weekend.

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Friday also saw a report on the United States, which has recorded its biggest improvement year-on-year, rising 4.4% in three decades. The central bank’s preferred metric, excluding food and energy, rose 3.6%, the highest since May 1991.

Biden delays appointment of central bank chairman

Bill Ackman, the billionaire hedge fund manager, said he had recently given a presentation to the New York Fed, which is responsible for implementing the US Federal Reserve’s monetary policy, and urged the company to start monetary tightening “immediately” by reducing asset purchases. Above all by raising interest rates as quickly as possible.

At the same time, US President Joe Biden’s delay in appointing the head of the central bank is creating an increasingly threatening leadership vacuum. The meeting usually takes place in October, with the expiration date beginning in February. Donald Trump also made his announcement on November 2, which shows that Biden is arriving later than usual and does not expect his appointment until he returns from his meetings in Europe.

The longer the delay, the worse the chance for a second position for Powell. Even if Fed Governor Loyal Bryanard is re-appointed or after him, there will be no change in monetary policy, but the wait is embarrassing.

Uncertainty over how inflation will rise in particular and when the central bank will take action, the delay is beginning to undermine the credibility of an administration already weakened by the slow pace of its budget and the failure to exit Afghanistan.

Powell is on fire on both the right and left. Democrat Sen. Elizabeth Warren has called him a “dangerous man” to run the central bank and has openly stated that he will not support his second term. She hopes he takes it very easy on the benches.

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Last week, Republican Senator Rick Scott, a former Florida governor, said he would not support the re-appointment unless Powell’s “foolishly ignores high inflation” and changes his behavior and stops following the political agenda. .

Both represent opposing interests in the US Congress. It is difficult to see how Paul would satisfy both of them.