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Showing 11 - 20 of 132 results for "Raising interest rates"

Chief economist update: The Fed and Australia

BENJAMIN ONG  |  TUESDAY, 4 MAY 2021
... securities] while at the same time repeating his expectation that the US central bank will have to start raising interest rates as soon as next year. The strengthening momentum in the US economy backs up Kaplan's rationale. The thing is, if the US ...

Chief economist update: Wall Street can't have its cake and eat it

BENJAMIN ONG  |  WEDNESDAY, 24 FEB 2021
... that the Fed could reverse its policy accommodation sooner-than-expected. After all, the Fed did start raising interest rates (after the GFC) in December 2016 (and continued to do so) even when inflation expectations were lower than present. Then again ...

Chief economist update: Moving target

BENJAMIN ONG  |  WEDNESDAY, 8 JAN 2020
... its 2 to 3 per cent medium-term inflation target... to between 1 and 3%". That is, the RBA should start raising interest rates if measured inflation breaches the 2% mid-point (instead of the current 2.5%) and vice-versa. Sure, the Fed and the RBA will ...

Chief economist update: When monetary and fiscal policies don't meet

BENJAMIN ONG  |  TUESDAY, 8 OCT 2019
... rationales to replace the old argument that a balanced budget would take pressure off the central bank from raising interest rates. Oh, I forgot, domestic interest rates are already at record lows (and are expected to head lower, even to negative). The ...

Chief economist update: The rate cut Australia has to have

BENJAMIN ONG  |  TUESDAY, 4 JUN 2019
... avoid having to do it by more down the track (using the same rationale central banks' spit out when raising interest rates). We heard this song before. Deloitte Access Economics director Chris Richardson echoes the familiar refrain, saying: "A cut ...

Chief economist update: Policy of patience

BENJAMIN ONG  |  THURSDAY, 2 MAY 2019
... market conditions are solid and strong. While measured inflation remains below target, note the Fed started raising interest rates in December 2015 (from 0-0.25% to 0.25%-0.5%) and in December 2016 (to 0.5%-0.75%) despite inflation expectations being ...

Chief economist update: A question of when?

BENJAMIN ONG  |  THURSDAY, 28 MAR 2019
... off the 2001 recession. The yield curve again inverted in starting in January 2006, the Fed did not stop raising interest rates until July of the same year that again proved too late to staunch the great recession of 2008. The year before, then Fed Chairman ...

Chief economist update: Where sentiment goes, there too is spending

BENJAMIN ONG  |  MONDAY, 18 FEB 2019
... government shutdown as well as a more fundamental shift in consumer expectations due to the Fed's pause in raising interest rates." The CME FedWatch Tool supports these expectations. According to the CME Group's website, the probability of the ...

Chief economist update: The clown in the White House

BENJAMIN ONG  |  TUESDAY, 18 DEC 2018
... re-consider its pronouncement of being "data-dependent" - which, I think is moot (it wouldn't continue raising interest rates if the data shows the US is heading for deflation would it?) - but more, Trump tweet dependent. We'll soon hear and ...

And so this is Christmas, another year (almost) over

BENJAMIN ONG  |  MONDAY, 10 DEC 2018
... 3.1%). The question going forward is what's the Fed going to do going forward. Some say, it would ease raising interest rates while others think it's now close to "neutral" (whatever that neutral rate is). Sure, we can extrapolate to our hearts ...