Central Banks

The big surprise that came along with the 75 basis point hike from the FOMC was the dissent of KC Fed President Esther George. Normally, she’s one of the Fed’s hawks so it was a shock that she would dissent.

A leading theory was that she dissented because she wanted the Fed to focus more on the balance sheet but her comments suggest she didn’t like surprising the market and hiking at such a rapid pace.

“The speed with which we adjust the policy rate is important,” she said, warning that “abrupt changes can be unsettling to households and small businesses.”

Looking ahead, she said the case to continue hiking is “clear cut” and that  inflation  is showing no sign of decelerating so I don’t think there are any real policy takeaways here.

Here’s the statement:

george dissent

Source link

Articles You May Like

Japan data – June exports +5.4% y/y (expected 6.4%) & imports +3.2% y/y (expected 9.3%)
BOJ bond meeting minutes shows some mixed views on pace of tapering
Singapore Non-oil Domestic Exports (NODX) June 2024: -0.4% m/m vs. +4.1% expected
Atlanta Fed GDPNow Q2 growth estimate rises to 2.5% versus 2.2% last
Trump’s Taiwan Comments: Textbook on How to Spook Investors

Leave a Reply

Your email address will not be published. Required fields are marked *