2018-05-13 08:33:00 Sun ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Incoming New York Fed President John Williams suggests that it is about time to end forward guidance in order to stop holding the financial market's hand. As the current president and chief research director of San Francisco Federal Reserve Bank, Williams expects U.S. inflation to rise to the central bank's 2% target in mid-2018. This inflation expectation resonates with the key consensus that most FOMC members share in the recent central bank forum. The inflation rate can stay above the 2% target for another couple of years even as the Federal Reserve continues the current interest rate hike toward late-2019. Also, Williams shares and echoes Fed Chair Jerome Powell's recent open statement that the Federal Reserve should complete the current course of forward guidance.
In fact, economic media commentators and stock market investors should focus on economic data such as real GDP economic growth, employment, wage growth, capital investment, and industrial production etc. It is thus futile for financial market observers to read into the FOMC minutes, narratives, and word choices etc for key clues about the U.S. macro economy. The FOMC minutes and linguistic analytics can be informative to some extent, whereas, only economic data drive monetary policy decisions.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2021-08-01 07:26:00 Sunday ET
The Biden administration launches economic reforms in fiscal and monetary stimulus, global trade, finance, and technology. President Joe Biden proposes s
2017-10-03 18:39:00 Tuesday ET
President Trump has nominated Jerome Powell to run the Federal Reserve once Fed Chair Janet Yellen's current term expires in February 2018. Trump's
2018-10-13 10:44:00 Saturday ET
Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-O
2019-07-07 18:36:00 Sunday ET
The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment. Even though China keeps substantial fore
2023-05-27 11:30:00 Saturday ET
Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank. What are the main root cau
2022-08-30 10:32:00 Tuesday ET
The financial services industry needs fewer banks worldwide. As long as banks have existed in human history, their managers have realized how not all dep