Apple’s Tim Cook says Chinese stimulus is working — and he’s not the only one

Apple CEO Tim Cook says he is a lot more bullish on China than he was three months ago — and he’s not the only one. On Apple’s earnings call Tuesday, Cook said improved trade dialogue between the U.S. and China as well as stimulus measures from Beijing were improving consumer confidence in the country “in a positive way.” In January, China reported its official economic growth rate was 6.6% for 2018, the slowest pace since 1990. In response to weakening growth, the Chinese government initiated a


Apple CEO Tim Cook says he is a lot more bullish on China than he was three months ago — and he’s not the only one. On Apple’s earnings call Tuesday, Cook said improved trade dialogue between the U.S. and China as well as stimulus measures from Beijing were improving consumer confidence in the country “in a positive way.” In January, China reported its official economic growth rate was 6.6% for 2018, the slowest pace since 1990. In response to weakening growth, the Chinese government initiated a
Apple’s Tim Cook says Chinese stimulus is working — and he’s not the only one Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: elizabeth schulze
Keywords: news, cnbc, companies, monetary, trade, tim, stimulus, apples, policymakers, cook, rate, china, chinese, measures, lot, hes, growth, working


Apple's Tim Cook says Chinese stimulus is working — and he's not the only one

Apple CEO Tim Cook says he is a lot more bullish on China than he was three months ago — and he’s not the only one.

On Apple’s earnings call Tuesday, Cook said improved trade dialogue between the U.S. and China as well as stimulus measures from Beijing were improving consumer confidence in the country “in a positive way.” The comments add to a growing list of CEOs, policymakers and investors expressing more optimism on the outlook for the Chinese economy.

“We certainly feel a lot better than we did 90 days ago,” Cook said.

In January, China reported its official economic growth rate was 6.6% for 2018, the slowest pace since 1990. In response to weakening growth, the Chinese government initiated a series of fiscal and monetary stimulus measures, including a cut to the value-added tax rate for key sectors such as manufacturing, transportation and construction. In addition, China’s central bank cut the ratio of cash banks must hold as reserves.

Business leaders and policymakers say the measures are paying off. Goldman Sachs CEO David Solomon said Monday “there’s no question China has responded better to stimulus.” The International Monetary Fund (IMF) raised its growth forecast for China last month to 6.3% for the year, citing fiscal and monetary stimulus and increased prospects of a trade deal.


Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: elizabeth schulze
Keywords: news, cnbc, companies, monetary, trade, tim, stimulus, apples, policymakers, cook, rate, china, chinese, measures, lot, hes, growth, working


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As Trump pressures Powell, Wall Street gives the Fed a passing grade

A separate New York Fed survey of market participants that includes large investors showed that 57 percent gave the top two effectiveness scores while a quarter gave the lowest two scores. But if markets find the Fed’s message confusing or not credible, they may surge or slump in ways that undermines the Fed’s impact. The emphasis on communications is also evident in Powell’s decision this year to hold news conferences after every Fed meeting, double the previous frequency. The New York Fed did


A separate New York Fed survey of market participants that includes large investors showed that 57 percent gave the top two effectiveness scores while a quarter gave the lowest two scores. But if markets find the Fed’s message confusing or not credible, they may surge or slump in ways that undermines the Fed’s impact. The emphasis on communications is also evident in Powell’s decision this year to hold news conferences after every Fed meeting, double the previous frequency. The New York Fed did
As Trump pressures Powell, Wall Street gives the Fed a passing grade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: brendan smialowski, afp, getty images
Keywords: news, cnbc, companies, grade, powell, pressures, wall, message, meeting, policymakers, rates, street, fed, passing, gives, markets, feds, york, trump, rate


As Trump pressures Powell, Wall Street gives the Fed a passing grade

A separate New York Fed survey of market participants that includes large investors showed that 57 percent gave the top two effectiveness scores while a quarter gave the lowest two scores. Both surveys were conducted March 6 to 11.

The grades are important because they help the Fed gauge how well its message is getting through to financial markets. The Fed relies on its credibility with investors to influence the economy.

After raising rates four times in 2018, a majority of Fed policymakers at their latest meeting in March expected that they would leave rates in their current 2.25-2.50% range for the rest of the year due to uncertainty about how much the global economy is slowing.

A well-honed message that rates are likely to stay on hold for a while can help ease financial conditions when central banks think those conditions overly tight. But if markets find the Fed’s message confusing or not credible, they may surge or slump in ways that undermines the Fed’s impact. That was the case late last year, when markets swung sharply in response to statements by Powell widely regarded by investors as communication missteps.

President Trump, meanwhile, has publicly slammed the central bank’s prior rate hikes for thwarting economic growth and he also pressed policymakers to change course.

Lewis Alexander, the chief economist at Nomura Securities, said the Fed moved policy “quite a lot” from December to March and that calibrating their language so everyone could understand it was not going to be easy.

“Powell’s stated intention to use plain language I very much endorse; there’s nothing in this world that can’t be explained thoroughly but simply,” he said.

The Fed is increasingly keen on its ability to communicate. Powell has instructed a small group of policymakers to come up with ways to improve it, minutes of the Fed’s March meeting published on Wednesday showed. This reflects concern that markets may take Fed forecasts on rates and the economy as promises rather than best-guess projections.

The emphasis on communications is also evident in Powell’s decision this year to hold news conferences after every Fed meeting, double the previous frequency. Even the New York Fed’s inclusion of the question on communications effectiveness in the March survey may reflect increased interest, given that historically it has posed that question only once a quarter.

Grades generally go up when the Fed does as expected and fall when it surprises, the Reuters analysis of grades over the last nine years show. The New York Fed did not make its pre-2011 surveys available.

Powell and other Fed policymakers have tried to dispel any perception that it could derail the economy by being too aggressive. Stocks leapt higher after Powell signaled he would be open to taking a go-slow approach on rate hikes.

In October 2015, when the Yellen Fed was navigating the difficult transition from years of super-low interest rates to a cycle of rate hikes, she got the worst grade of her tenure — an average 2.27 out of 5.

The Bernanke Fed did worse, getting a grade of 2.1 in late 2013, when they did not begin to taper the Fed’s bond purchases in September as markets had expected. His grades later recovered as the Fed limited its controversial quantitative easing program.


Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: brendan smialowski, afp, getty images
Keywords: news, cnbc, companies, grade, powell, pressures, wall, message, meeting, policymakers, rates, street, fed, passing, gives, markets, feds, york, trump, rate


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Fed’s Williams says new economic outlook necessary for rate hikes

“I don’t think that it would take a big change, but it would be a different outlook either for growth or inflation” to return to hiking rates, Williams, one three Fed vice chairs and a key voice on rate policy, told Reuters. The Fed could also keep levels of bank reserves on its books that are far closer to current levels than previously thought, Williams said. Williams estimated the so-called balance sheet rolloff could end when bank reserves get to “maybe $1 trillion of reserves or somewhat mo


“I don’t think that it would take a big change, but it would be a different outlook either for growth or inflation” to return to hiking rates, Williams, one three Fed vice chairs and a key voice on rate policy, told Reuters. The Fed could also keep levels of bank reserves on its books that are far closer to current levels than previously thought, Williams said. Williams estimated the so-called balance sheet rolloff could end when bank reserves get to “maybe $1 trillion of reserves or somewhat mo
Fed’s Williams says new economic outlook necessary for rate hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, reserves, feds, end, growth, hikes, rates, fed, outlook, meeting, bank, rate, economic, policymakers, policy, williams, necessary


Fed's Williams says new economic outlook necessary for rate hikes

New York Fed President John Williams on Tuesday said he was comfortable with the level U.S. interest rates are at now, and sees no need to raise them again unless growth or inflation shift to an unexpectedly higher gear.

In an interview with Reuters, Williams said he felt rates had reached his current view of a lower “neutral” level, with growth and unemployment leveling off and inflation, if anything, a bit weaker than hoped for.

Asked if it would take some sort of shock to resume rate increases, he said it would require one or more of those factors to surprise to the upside.

“I don’t think that it would take a big change, but it would be a different outlook either for growth or inflation” to return to hiking rates, Williams, one three Fed vice chairs and a key voice on rate policy, told Reuters.

Williams’ comments, made just weeks after the central bank paused its once quarterly rate hikes, underscore just how high the bar would be for tighter monetary policy, and suggest that such a move may not come any time soon.

The Fed could also keep levels of bank reserves on its books that are far closer to current levels than previously thought, Williams said.

Along with its rate-hike holiday, policymakers are currently finalizing plans on how they would end the reduction of their balance sheet, which includes holdings of bank reserves bulked up in part by the Fed’s need for cash to buy bonds to halt the global financial crisis a decade ago.

Williams estimated the so-called balance sheet rolloff could end when bank reserves get to “maybe $1 trillion of reserves or somewhat more than that,” about $600 billion less than current levels.

The figure is “a guess today of the amount of reserves that will be held in the system in the future – but again we are learning and will get a finer touch on that,” he said.

Williams, who is vice chairman of the rate-setting Federal Open Market Committee and votes whenever that group meets, said policymakers are “in a very good place” on policy, with rates around neutral, the U.S. economy in a strong place and pressures on prices subdued.

“Monetary policy is where it should be,” he said. “It’s around my view of what neutral interest rates are.”

After its most recent meeting, Fed policymakers signaled their three-year drive to tighten monetary policy may be at an end due to a suddenly cloudy outlook for the U.S. economy, a global growth slowdown and impasses over trade and government budget negotiations.

The Fed increased interest rates three times in 2017 and four times last year, pushing them up to 2.25 percent to 2.5 percent at its final 2018 meeting in December.

Further details on that policy meeting at the end of January are expected when the Fed releases records from its deliberations on Wednesday. In recent days Cleveland Federal Reserve President Loretta Mester and Fed Governor Lael Brainard both said they supported ending the U.S. central bank’s unwinding of its bond holdings this year. The Fed’s balance sheet ballooned to over $4 trillion in the wake of the 2007-09 recession but policymakers began trimming its bond holdings in the final months of 2017. Further details on that policy meeting at the end of January are expected when the Fed releases records from its deliberations on Wednesday.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, reserves, feds, end, growth, hikes, rates, fed, outlook, meeting, bank, rate, economic, policymakers, policy, williams, necessary


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BOJ policymakers warned of darkening global outlook: meeting summary

Several Bank of Japan policymakers warned the global economic outlook was worsening and recent oil price falls could further delay achievement of their 2 percent inflation target, a summary of opinions at the bank’s December rate review showed on Friday. “Uncertainty over the global economic outlook is heightening. Given such conditions are likely to persist, risks are generally skewed to the downside,” one member was quoted as saying. At the December meeting, the BOJ kept monetary policy steady


Several Bank of Japan policymakers warned the global economic outlook was worsening and recent oil price falls could further delay achievement of their 2 percent inflation target, a summary of opinions at the bank’s December rate review showed on Friday. “Uncertainty over the global economic outlook is heightening. Given such conditions are likely to persist, risks are generally skewed to the downside,” one member was quoted as saying. At the December meeting, the BOJ kept monetary policy steady
BOJ policymakers warned of darkening global outlook: meeting summary Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-28  Authors: behrouz mehri, afp, getty images
Keywords: news, cnbc, companies, boj, warned, darkening, economic, outlook, risks, heightening, worsening, target, summary, policymakers, steady, global, meeting


BOJ policymakers warned of darkening global outlook: meeting summary

Several Bank of Japan policymakers warned the global economic outlook was worsening and recent oil price falls could further delay achievement of their 2 percent inflation target, a summary of opinions at the bank’s December rate review showed on Friday.

“Uncertainty over the global economic outlook is heightening. Given such conditions are likely to persist, risks are generally skewed to the downside,” one member was quoted as saying.

At the December meeting, the BOJ kept monetary policy steady but its governor warned of heightening risks to the economic outlook as fears of a slowdown in global growth rattled markets.


Company: cnbc, Activity: cnbc, Date: 2018-12-28  Authors: behrouz mehri, afp, getty images
Keywords: news, cnbc, companies, boj, warned, darkening, economic, outlook, risks, heightening, worsening, target, summary, policymakers, steady, global, meeting


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ECB announces the end of crisis-era stimulus, switches to reinvestments

They will stop expanding quantitative easing (QE) from the end of December — when bond purchases will fall from 15 billion euros a month to zero. In winding up its massive bond-buying program, the ECB said it planned to spend cash from maturing bonds to purchase additional debt. “With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” “It seems as if the ECB wants to keep as many cards as possible close to its chest,” Br


They will stop expanding quantitative easing (QE) from the end of December — when bond purchases will fall from 15 billion euros a month to zero. In winding up its massive bond-buying program, the ECB said it planned to spend cash from maturing bonds to purchase additional debt. “With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” “It seems as if the ECB wants to keep as many cards as possible close to its chest,” Br
ECB announces the end of crisis-era stimulus, switches to reinvestments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: sam meredith
Keywords: news, cnbc, companies, ecb, stimulus, zone, policymakers, crisisera, end, qe, announces, euros, switches, program, reinvestments, purchases, euro, trillion


ECB announces the end of crisis-era stimulus, switches to reinvestments

The ECB’s governing council confirmed what policymakers had been saying since the summer. They will stop expanding quantitative easing (QE) from the end of December — when bond purchases will fall from 15 billion euros a month to zero.

It marks a historic moment for the central bank, as President Mario Draghi dismantles one of his most contentious policies.

In winding up its massive bond-buying program, the ECB said it planned to spend cash from maturing bonds to purchase additional debt.

These purchases are designed to keep borrowing costs down through to sometime in 2021.

In theory, the open-ended timeline should allow policymakers to push back the date at a relatively low cost to credibility if the economy falters.

The ECB’s asset purchasing program — under which the bank bought more than 2.6 trillion euros ($2.9 trillion) — was introduced in March 2015 in a bid to rescue the euro zone economy from deflationary forces and rebuild confidence.

The measures are widely credited to have helped revive the 19-member currency bloc after a double-dip recession and the residual effects of the European debt crisis.

“With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” Carsten Brzeski, chief economist at ING, said in a research note published Thursday.

“It seems as if the ECB wants to keep as many cards as possible close to its chest,” Brzeski said.

The central bank’s decision to end QE after nearly four years is thought to symbolize the end of crisis-era policies in the euro zone, despite coming at a difficult time for Europe.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: sam meredith
Keywords: news, cnbc, companies, ecb, stimulus, zone, policymakers, crisisera, end, qe, announces, euros, switches, program, reinvestments, purchases, euro, trillion


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Navigating fintech’s rise: IMF, World Bank launch guide for policymakers

The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology — commonly known as fintech. The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings. Fintech has the potential to reach the 1.7 billion adults in the world that don’t have access to financial services, IMF Managing Dire


The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology — commonly known as fintech. The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings. Fintech has the potential to reach the 1.7 billion adults in the world that don’t have access to financial services, IMF Managing Dire
Navigating fintech’s rise: IMF, World Bank launch guide for policymakers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: yen nee lee
Keywords: news, cnbc, companies, policymakers, navigating, bank, fintechs, technology, financial, work, paper, services, world, launch, fintech, systems, imf, rise, guide


Navigating fintech's rise: IMF, World Bank launch guide for policymakers

The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology — commonly known as fintech.

The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings.

The paper outlines 12 “elements” or considerations that the IMF, the World Bank and governments can keep in mind when designing policies and regulations that can maximize the benefits of fintech while keeping financial systems sound.

Those “elements” include using fintech to promote financial inclusion, allowing new technology players to have level playing fields with existing companies and having countries work together to protect the global financial system.

Fintech has the potential to reach the 1.7 billion adults in the world that don’t have access to financial services, IMF Managing Director Christine Lagarde said in a statement.

But, new technology could threaten existing financial systems. For example, volatility in the price of cryptocurrencies has raised concerns about investor protection, according to the paper.

“Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks,” Lagarde said.

“We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not just the few,” she added.

World Bank Group President Jim Yong Kim said fintech would be particularly helpful to low-income countries, where access to financial services is low.

Both organizations said the paper doesn’t represent current work, nor does it aim to provide specific guidance or policy advice. They will, however, start to develop specific programs on fintech.

The IMF will focus initially on the implications on monetary and financial stability and how international monetary systems and global financial safety nets evolve. The World Bank will work on using fintech to deepen financial markets, enhance responsible access to financial services, and improve cross-border payments and remittance transfer systems.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: yen nee lee
Keywords: news, cnbc, companies, policymakers, navigating, bank, fintechs, technology, financial, work, paper, services, world, launch, fintech, systems, imf, rise, guide


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ECB’s rising growth fears not enough to derail policy: minutes

Global trade tensions could slow euro zone growth further and European Central Bank policymakers debated last month whether to downgrade their risk assessment, minutes of their September meeting showed on Thursday. Indeed, even as trade tensions weighed on growth and a stock market selloff amplified growth fears, some policymakers argued that was not enough for the bank to backtrack on policy normalization. “A gradual pace of monetary policy normalisation is justified,” Finnish central bank chie


Global trade tensions could slow euro zone growth further and European Central Bank policymakers debated last month whether to downgrade their risk assessment, minutes of their September meeting showed on Thursday. Indeed, even as trade tensions weighed on growth and a stock market selloff amplified growth fears, some policymakers argued that was not enough for the bank to backtrack on policy normalization. “A gradual pace of monetary policy normalisation is justified,” Finnish central bank chie
ECB’s rising growth fears not enough to derail policy: minutes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: krisztian bocsi, bloomberg, getty images
Keywords: news, cnbc, companies, growth, fears, derail, policymakers, rising, ecb, bank, minutes, argued, month, policy, ecbs, meeting, inflation


ECB's rising growth fears not enough to derail policy: minutes

Global trade tensions could slow euro zone growth further and European Central Bank policymakers debated last month whether to downgrade their risk assessment, minutes of their September meeting showed on Thursday.

But policymakers ultimately concluded that the domestic economy was showing enough resilience to consider risks broadly balanced, even if some argued that the factors behind the recent slowdown may not be temporary as earlier thought, the ECB said in the accounts of the Sept 13 meeting.

The ECB kept policy unchanged as expected last month, staying on track to wrap up a 2.6 trillion-euro ($3 trillion) bond purchases scheme this year and raise interest rates next autumn, continuing its slow but steady pace of policy tightening.

Indeed, even as trade tensions weighed on growth and a stock market selloff amplified growth fears, some policymakers argued that was not enough for the bank to backtrack on policy normalization.

“A gradual pace of monetary policy normalisation is justified,” Finnish central bank chief Olli Rehn said in Indonesia on Thursday. “The current strength of the euro area economy supports our confidence that inflation will converge towards … the ECB’s price stability target.”

But some policymakers appear to be increasingly cautions, according to the minutes.

“A remark was made that some of the factors behind the (downward growth) revisions might not be entirely of a transitory nature,” the minutes showed. “It was also argued that there could be larger spillovers from weaker external demand to domestic demand.”

Still, while some policymakers argued that the case could be made for downgrading the risk assessment, there was agreement that the underlying strength of the economy would mitigate the downside risks to activity.

“High-frequency indicators had stabilised and remained at elevated levels, underlining the overall robustness of economic activity,” chief economist Peter Praet told policymakers at the meeting, the minutes showed.

With years of unprecedented stimulus finally lifting inflation, the ECB has been dialling back support, but only by the smallest of increments, fearing that bigger moves risked unravelling its work.

While the ECB has not explicitly pledged any rate hikes, policymakers, including Praet, have argued that they were comfortable with market expectation for a small increase in the fourth quarter of 2019, followed by only small and infrequent moves.

“To be any more precise than that, to lock in a date, to tie our hands, would be rather risky,” Ardo Hansson, Estonia’s central bank chief said at the annual meeting of the International Monetary Fund on Thursday.

“When we get closer, we can have another discussion if we need to adjust the language again, but this is not a debate we are going to have just yet,” Hansson said.

Policymakers also concluded last month that domestic cost pressures continued to build and broaden, indicating that inflation would rise, moving back towards the bank’s target of almost 2 percent after undershooting it for over five years.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: krisztian bocsi, bloomberg, getty images
Keywords: news, cnbc, companies, growth, fears, derail, policymakers, rising, ecb, bank, minutes, argued, month, policy, ecbs, meeting, inflation


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Japan’s consumer price growth slows in April

Japan’s core consumer prices rose 0.7 percent in April from a year earlier, government data showed on Friday, showing little of the inflationary momentum needed to reach the central bank’s elusive 2 percent target. The increase in the core consumer price index, which includes oil products but excludes volatile fresh food costs, fell slightly short of a median market forecast for a 0.8 percent rise. While recent rises in oil costs may underpin price growth, many analysts expect inflation to fall


Japan’s core consumer prices rose 0.7 percent in April from a year earlier, government data showed on Friday, showing little of the inflationary momentum needed to reach the central bank’s elusive 2 percent target. The increase in the core consumer price index, which includes oil products but excludes volatile fresh food costs, fell slightly short of a median market forecast for a 0.8 percent rise. While recent rises in oil costs may underpin price growth, many analysts expect inflation to fall
Japan’s consumer price growth slows in April Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-17  Authors: smith collection, gado, getty images
Keywords: news, cnbc, companies, japans, slows, consumer, growth, short, hitting, price, policymakers, inflation, analysts, oil, prices


Japan's consumer price growth slows in April

Japan’s core consumer prices rose 0.7 percent in April from a year earlier, government data showed on Friday, showing little of the inflationary momentum needed to reach the central bank’s elusive 2 percent target.

The increase in the core consumer price index, which includes oil products but excludes volatile fresh food costs, fell slightly short of a median market forecast for a 0.8 percent rise. It followed a 0.9 percent gain in March.

While recent rises in oil costs may underpin price growth, many analysts expect inflation to fall short of the Bank of Japan’s goal in coming years as companies remain wary of raising prices for fear of scaring away cost-sensitive consumers.

Subdued inflation and signs that growth may have reached its peak could discourage BOJ policymakers from signalling their intention to end ultra-loose monetary policy, analysts say.

Japan’s economy contracted more than expected at the start of this year, suggesting growth has peaked after the best run of expansion in decades.

While many analysts expect growth to rebound in the current quarter, any indication of the economy hitting a plateau would be a bad omen for policymakers’ efforts to lift Japan sustainably out of deflation.

The BOJ last month dropped a timeframe for hitting its price goal and Governor Haruhiko Kuroda has conceded that pushing up inflation expectations would take time.


Company: cnbc, Activity: cnbc, Date: 2018-05-17  Authors: smith collection, gado, getty images
Keywords: news, cnbc, companies, japans, slows, consumer, growth, short, hitting, price, policymakers, inflation, analysts, oil, prices


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Dollar bounces after Monday’s drop; Fed in focus

The dollar edged higher on Tuesday, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the U.S. Federal Reserve, which is widely expected to raise interest rates. Markets expect two more rate hikes after Wednesday for the remainder of the year, although analysts warn that if a majority of Fed policymakers forecast a total of four increases this year in their “dot plot” projections then the dollar could gain. The dollar edged 0.


The dollar edged higher on Tuesday, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the U.S. Federal Reserve, which is widely expected to raise interest rates. Markets expect two more rate hikes after Wednesday for the remainder of the year, although analysts warn that if a majority of Fed policymakers forecast a total of four increases this year in their “dot plot” projections then the dollar could gain. The dollar edged 0.
Dollar bounces after Monday’s drop; Fed in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-03-19  Authors: jock fistick, bloomberg via getty images
Keywords: news, cnbc, companies, interest, rate, bounces, higher, focus, fed, drop, previous, reversing, hikes, policymakers, mondays, dollar, investors


Dollar bounces after Monday's drop; Fed in focus

The dollar edged higher on Tuesday, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the U.S. Federal Reserve, which is widely expected to raise interest rates.

Though a quarter point hike — its sixth since the Fed began raising interest rates in late 2015 — is baked into market prices, investors are keen to hear what officials have to say on the future trajectory of rates.

Markets expect two more rate hikes after Wednesday for the remainder of the year, although analysts warn that if a majority of Fed policymakers forecast a total of four increases this year in their “dot plot” projections then the dollar could gain.

“Only a confident sounding outlook wouldn’t shake the dollar out of its ranges as there seems to be more structural headwinds at play, but if we see many voices leaning towards four rate hikes, that might be a game changer in the short term,” said Richard Falkenhall, senior FX strategist at SEB.

The dollar edged 0.42 percent higher against a basket of currencies to 90.15, partially reversing a 0.5 percent drop the previous day thanks to a relief rally in sterling after a transition deal was announced and the euro’s bounce.

On Tuesday, the single currency was consolidating gains at $1.2296 against the dollar.

The common currency had drawn strength on Monday from a source-based Reuters report that ECB policymakers are shifting the focus of their debates.


Company: cnbc, Activity: cnbc, Date: 2018-03-19  Authors: jock fistick, bloomberg via getty images
Keywords: news, cnbc, companies, interest, rate, bounces, higher, focus, fed, drop, previous, reversing, hikes, policymakers, mondays, dollar, investors


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The Fed maintains 2018, 2019 rate forecast

The Federal Reserve said Wednesday that it sees the federal funds rate at 2.1 percent by the end of 2018, unchanged from its September forecast. The U.S. central bank also maintained its 2019 projection, saying it sees the benchmark rate at 2.7 percent. Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The charts, which the Fed began publishing in 2012, have become a series of tea leaves


The Federal Reserve said Wednesday that it sees the federal funds rate at 2.1 percent by the end of 2018, unchanged from its September forecast. The U.S. central bank also maintained its 2019 projection, saying it sees the benchmark rate at 2.7 percent. Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The charts, which the Fed began publishing in 2012, have become a series of tea leaves
The Fed maintains 2018, 2019 rate forecast Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-12-13  Authors: christine wang, john w schoen
Keywords: news, games, cnbc, companies, sees, rate, tea, forecast, policymakers, fed, read, rates, reserve, 2018, projections, 2019, leaves, maintains, federal


The Fed maintains 2018, 2019 rate forecast

The Federal Reserve said Wednesday that it sees the federal funds rate at 2.1 percent by the end of 2018, unchanged from its September forecast.

The U.S. central bank also maintained its 2019 projection, saying it sees the benchmark rate at 2.7 percent.

Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The results are the central bank’s so-called dot plot — a visual representation of how many members think rates will hit a given level over the short, medium and longer run.

The charts, which the Fed began publishing in 2012, have become a series of tea leaves that many investors like to read for hints about what the FOMC will do next. But those tea leaves can be hard to read in isolation.

To give a better view of how the Fed’s thinking has changed over time, we’ve plotted the changes in the dots over the last five years, along with the key economic data policymakers had to consider at each meeting.

Here are five years of “dot plots” in one interactive chart, including the most recent projections released Wednesday.


Company: cnbc, Activity: cnbc, Date: 2017-12-13  Authors: christine wang, john w schoen
Keywords: news, games, cnbc, companies, sees, rate, tea, forecast, policymakers, fed, read, rates, reserve, 2018, projections, 2019, leaves, maintains, federal


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