WASHINGTON - Federal Reserve Chairman Jerome Powell was as clear as a monetary policymaker can be Wednesday, elaborating on the Federal Open Market Committee's latest "normalization" move: so long as the economy fulfills expectations the Fed will keep raising short-term interest rates, but not with any particular objective of becoming restrictive.
Data capture the continued sell-off following the strong Sept NFP/AHE data which sent long-end yields back near the highs from May. Data shows leveraged investors used the sharp sell-off in the front-end to scale back on some net short positions – buying 166k in ED$ contracts and a combined $5.3m/01 in TU & FV contracts. Further out the curve however, they continued to sell TY & WN where net shorts hit another record.
Federal Reserve Chairman Jerome Powell should have no trouble getting support for an increase in the federal funds rate at the Federal Open Market Committee's late September meeting -- what would be the third since he took over from Janet Yellen in February and the eighth since the FOMC stopped holding rates near zero in December 2015.
Federal Reserve Chairmen have sometimes broken news and moved markets in Jackson Hole, Wyoming. So speculation is rampant about what Jerome Powell might say when his turn comes Friday to keynote the Kansas City Federal Reserve Bank's annual symposium.
Although the U.S. economy has seldom looked better, Federal Reserve Chairman Jeremy Powell and his colleagues will make monetary policy under a couple of clouds when they convene their July 31-Aug. 1 Federal Open Market Committee meeting
Below Average US extension but gains from shifts from equities There are fairly robust month-end duration extensions in UK markets according to Bloomberg-Barclays. Other month end extensions are fairly average-looking affairs for July.
ST. LOUIS - Federal Reserve Chairman Jerome Powell famously said last week the Fed’s policymaking Federal Open Market Committee believes that "for now--the best way forward is to keep gradually raising the federal funds rate," but he and the FOMC majority may get stiff resistance from some quarters.
Minutes of the June 12-13 Federal Open Market Committee meeting don't add a lot to our understanding of prevailing monetary policy sentiment among members of the Federal Reserve's policymaking body. But they do reinforce mounting concerns about trade and, to a lesser extent, the shape of the yield curve.
The Federal Reserve tilted toward a modestly more aggressive monetary policy approach at its mid-June meeting, but one centrist Federal Reserve Bank President is standing fast and urging "caution," Philadelphia Fed President Patrick Harker is not ordinarily thought of as a "dove," but he made a strong case for going slow on further rate hikes in a June 27 interview.
The ECB has just released new data on MFI (ECB-speak for banks) holdings of EGBs and these cover the volatile month of May. Of course May was the epicentre of the BTP and Italian political storm and so the information provide fairly recent colour on how the various jurisdictions reacted.