FOMC Minutes Show Worry Over Virus Without More Stimulus

The minutes of the mid-September Federal Open Market Committee meeting Wednesday showed Fed Board members and regional bank presidents worried about more intense virus outbreaks and the chance of no near-term government stimulus – weeks before both concerns seemed to be realised. The minutes added almost nothing in the way of fresh insights not already […]
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Fed’s Powell: Preventing Worse Economic Damage

Federal Reserve Chair Jay Powell Tuesday said he is more concerned about preventing worse damage from the pandemic crisis than celebrating any rebound – in fact, saying the economy is slowing and unemployment is worse than indicated. Powell’s main message was that there is an urgency to provide support now when it counts the most. […]
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BoE’s Haskel Ready to Green Light Further Stimulus

A top UK rate-setter Monday expressed his willingness to approve a further loosening of monetary policy, noting the economic benefits of sub-zero interest rates in other jurisdictions. “I stand ready to vote for more stimulus measures should they be needed,” said Jonathan Haskel, external member of the Bank of England’s Monetary Policy Committee, in a […]
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Data Takes Backstage to Pence vs Harris

Sandwiched between two extremely busy weeks, a quiet period is on tap in the upcoming week – for data at least. After the “pageantry” of the first presidential debate, there is a hope that Wednesday’s undercard debate between Vice President Mike Pence and Senator Kamala Harris will be a bit more low-key and centred on […]
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US Sept Payrolls Up; Unemployment 7.9%

The September employment report Friday showed solid, but softer than expected payrolls improvement and a modest increase in hourly earnings. A sharp drop in local education payrolls was a key factor. At the same time, the unemployment rate fell modestly in the month to 7.9%, still elevated compared to the pre-COVID rate of 3.5% in […]
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White House, Govt Roiled by Trump’s Positive Test

As President Trump and the First Lady are restricted to their living quarters in the White House Friday some of the implications of their COVID-19 diagnoses are being revealed minute by minute. Much, however, has not been disclosed by the White House, including whether the president knew of his close aide’s positive result before he […]
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US Manufacturing Conditions Expand Further

The September ISM index Thursday showed US manufacturing sector activity expanded further, but at a modestly slower rate. The headline PMI index fell to 55.4 from 56.0 in August, below expectations for a further increase to 56.6. The new orders index fell to 60.2 from 67.6 in August, while the production reading fell to 61.0 […]
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US Second Quarter GDP Revised Up to -31.4%

Second quarter US GDP Wednesday was revised up slightly due to upward adjustments to consumption and residential fixed investment. Analysts will look past this data and toward the third quarter’s likely partial recovery. Second quarter GDP was revised up to a 31.4% decline from the 31.7% drop in the second estimate. Analysts had expected GDP […]
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ECB President Comments on Inflation Targeting

Europe’s top central banker Wednesday suggested that symmetrical inflation targeting could have merit in dispelling the low inflation environment suffered in advanced economies since the financial crisis. Addressing the ECB and its Watchers XXI conference in Frankfurt, ECB President Christine Lagarde noted that many central banks have explored a strategy to overshoot inflation to “explicitly […]
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BoE’s Haldane Sees No Current Need for Negative Rates

A top Bank of England (BoE) official Wednesday vigorously downplayed the need for sub-zero interest rates in the UK, citing an economic recovery that has far outpaced the Bank’s expectations. “At present, none of the conditions [that would necessitate negative rates] is, in my view, satisfied,” said Andy Haldane in a virtual speech to the […]
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