US Dollar Weakens, Treasuries Rally on Fed Pivot Bets
The dollar weakened and Treasuries extended their November rally on speculation the Federal Reserve is done with interest-rate hikes and will be able to ease policy next year. The Japanese yen and New Zealand dollar led gains as the greenback lost ground against all of its Group-of-10 peers. Fed swaps are anticipating over 100 basis points of rate cuts by the end of 2024 after Governor Christopher Waller said the bank is well positioned to push inflation to a 2% target. Billionaire investor Bill Ackman said the Fed could begin cutting interest rates as soon as the first quarter, sooner than markets expected. “The ... (full story)
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AUD futures approach four-month highs after rallying for a third session. Dan Deming discusses.
Billionaire Charlie Munger, the investing sage who made a fortune even before he became Warren Buffett’s right-hand man at Berkshire Hathaway, has died at age 99. Munger died ...
post: Fed's Goolsbee: Market-Based Inflation Expectations Have Been Anchored post: Fed's Goolsbee: Keeping Rates High For Too Long Is A Concern
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Key statistics: The monthly CPI indicator rose 4.9% in the 12 months to October. • The most significant price rises were Housing (+6.1%), Food and non-alcoholic beverages (+5.3%), ...
Key statistics: In seasonally adjusted terms in the September quarter: • Total construction work done rose 1.3% to $64,768.7m • Building work done rose 0.2% to $34,300.2m • ...
The Monetary Policy Committee discussed recent developments in the New Zealand economy. The Committee agreed that monetary conditions are restricting spending and reducing inflationary pressure. Supply constraints in the economy continue to ease and demand growth is slowing, but to a lesser extent than expected. Inflation remains too high and inflationary pressures continue to emerge. Further slowing in spending growth is needed to reduce demand toward the economy’s ability to supply goods and services, to ensure that consumer price inflation returns to its target range. Global economic growth remains below trend as high interest rates weigh on demand. Easing global demand is placing downward pressure on New Zealand exports, and export revenues are lower than in recent years. However, global prices for some products, such as dairy, have stabilised in recent months. Members noted that to date, global growth has been stronger than was expected at the start of this year, supported by sustained strength in the US economy and a recent lift in economic activity in China. However, going forward, subdued global growth is expected to restrain demand and prices for New Zealand’s exports over the medium term. post: RBNZ Forecasts Show No Rate Cut Until Mid-2025 post: RBNZ: INTEREST RATES ARE RESTRICTING SPENDING IN THE ECONOMY AND CONSUMER PRICE INFLATION IS DECLINING, AS IS NECESSARY TO MEET THE COMMITTEE'S REMIT. post: RBNZ: HOWEVER, INFLATION REMAINS TOO HIGH, AND THE COMMITTEE REMAINS WARY OF ONGOING INFLATIONARY PRESSURES