Tag: Federal Open Market Committee

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Trump’s call on Powell to lower benchmark rates has no impact on direction of foreign exchange rates.

Reuters today posted yet another call by U.S. President Donald Trump for Jerome Powell, chairman of the Federal Open Market Committee to lower the target range for the federal funds rate. The target range for the federal funds rate is currently between 4.25% and 4.50%. The federal funds rate is a weighted average of the … Continue reading Trump’s call on Powell to lower benchmark rates has no impact on direction of foreign exchange rates.

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Looking behind the gardened walls of central banks

Where are the trading desks of the Federal Reserve System and the European Central Bank moving markets? Back in mid-December, the Federal Open Market Committee directed its trading desk at the Federal Reserve Bank of New York to undertake open market operations to maintain the federal funds rate between the target range of 4.25% and … Continue reading Looking behind the gardened walls of central banks

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Three U.S. senators recommend a 75-basis point cut in the fed funds rate.

Between 9:02 am and 11:26 am, the CME FedWatch tool reflected an increase in the chances that the Federal Open Market Committee would increase the federal funds target range by 50-basis points. Traders expect a 61% chance of a 50-point increase. Chances of a 25-point increase has slipped to 39% at the time of this … Continue reading Three U.S. senators recommend a 75-basis point cut in the fed funds rate.

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Interbank market news scan: Kugler continues the Fed Speak on inflation.

Today, Federal Reserve System governor Adriana D. Kugler reiterated in remarks what we have been hearing from other Federal Reserve Board members: that inflation is still too high, even given the progress on lowering it. Governor Kugler pointed out that inflation is moving down slowly and that easing rates is possible later this year. Like … Continue reading Interbank market news scan: Kugler continues the Fed Speak on inflation.

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Retail foreign exchange trader news scan as of 6:46 pm AST. Mester wants to see more progress toward lower inflation.

Reference rates per Board of Governors-Federal Reserve System Interest on Reserve Balances: 5.40% Discount Window Rate: 5.50% Effective Federal Funds Rate: 5.33% Source: Board of Governors of the Federal Reserve System Foreign exchange rates AUD/USD=0.6677 NZD/USD=0.6121 USD/JPY=155.39 GBP/USD=1.2672 EUR/USD=1.0868 USD/CAD=1.3615 USD/MXN=16.6852 Source: x-rates.com (Are you ready for your next trader challenge? Visit https://toptiertrader.com/?ref=1449) Head of … Continue reading Retail foreign exchange trader news scan as of 6:46 pm AST. Mester wants to see more progress toward lower inflation.

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Is it time for the Federal Reserve to raise the federal funds rate?

The world has risk-laden problems to solve. Higher borrowing rates are indicia of higher risks to returns on capital, but the cries for lower rates do not appear to resonate with capital’s search for high returns that compensate for higher risks. If the Federal Reserve System is to meet its statutory dual mandate of stable … Continue reading Is it time for the Federal Reserve to raise the federal funds rate?

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If the Fed wants to protect its political independence, it should petition to amend the Federal Reserve Act.

We are moving deeper into the silly season. If there are still any primaries going on, Super Tuesday just about sucked what little oxygen there was out of the room. That President Joe Biden and former president Donald Trump would end up being the presumptive nominees for their parties was, based on the polling, expected. … Continue reading If the Fed wants to protect its political independence, it should petition to amend the Federal Reserve Act.

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Fed Day: The Community Reinvestment Act misses growth creation in low-income communities.

I live in the 30310-zip code made up primarily of Atlanta’s West End neighborhood. There is a population of approximately 26,062 people with a median income of $24,604. 79.9% of the residents classify themselves as African American or black, while 12.4% of residents classify themselves as white or Caucasian. The unemployment rate hovers around 4.6%. … Continue reading Fed Day: The Community Reinvestment Act misses growth creation in low-income communities.

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It appears that the foreign exchange and bond markets were ready for the PCE report.

The U.S. Bureau of Economic Analysis gave the Federal Open Market Committee another reason to sing, “Should I Stay or Should I Go?” this morning as the Bureau presented its read on changes in consumer price levels. The Personal Consumption Price Index, the preferred price level barometer of the Federal Reserve System, increased 2.8% between … Continue reading It appears that the foreign exchange and bond markets were ready for the PCE report.