Day: 28 August 2020

US July Personal Income Ticks Up, PCE Growth Slows

Personal income ticked up in July after two declines, reflecting a further increase in wages and salaries and small gains in proprietors’ income and rental income. At the same time, consumer spending increased in each of the last three months, though at a progressively slower rate. Consumption is running well above the second quarter average, […]

BoE’s Bailey: Bank Underestimated its Fire Power

The Bank of England (BoE) underestimated the tools at its disposal in the event of a Covid-sized crisis and sees an ample supply of financial assets should the economy require further quantitative easing. “It looks from today’s vantage point that we were too cautious about our remaining firepower pre-Covid,” said BoE Governor Andrew Bailey, addressing […]

Powell: Fed will be Flexible with Average Inflation Targeting

Federal Reserve Chair Jerome Powell said Thursday the Fed will be “flexible” in pursuing a new “average inflation targeting” regime and not use any set “mathematical formula”. Powell, elaborating on what he called a “robust” new monetary policy strategy framework adopted earlier by the Fed’s policymaking Federal Open Market Committee, also noted the new policy […]

Analysis: Fed Can Now Focus on Jobs

The pandemic’s destruction of US employment was not the trigger for the new Federal Reserve policy framework, in the works long before the virus hit. However, the jobs crisis is a perfectly appropriate context for the focus on employment. That focus had already become the hallmark of the Jay Powell era – and now it […]

ECB Chief Economist Hints at Further Eurozone Stimulus

The European Central Bank (ECB) may be forced to enact further extraordinary measures to lift inflation toward its target following the shock of the coronavirus, according to the ECB’s chief economist, Philip Lane, Thursday. “For the ECB to deliver on its mandate [the Bank may resort] to additional monetary stimulus,” Lane told the Kansas City […]

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