Fed’s Waller favours multiple big interest rate hikes

30/5/2022 9:30:00 PM

Fed’s Waller favours multiple big interest rate hikes

Us Federal Reserve, Us İnflation

Fed’s Waller favours multiple big interest rate hike s

FRANKFURT, May 30 — The US central bank needs to keep raising interest rates in big steps until inflation starts to come down, Federal Reserve Governor Christopher Waller said...

Monday, 30 May 2022 11:39 PM MYTFRANKFURT, May 30 — The US central bank needs to keep raising interest rates in big steps until inflation starts to come down, Federal Reserve Governor Christopher Waller said today.The Fed early this month announced the biggest increase in the benchmark interest rate since 2000, following a smaller hike in March, as it aims to tamp down the highest inflation in more than 40 years.

Waller said he supports more half-point rate hikes “for several meetings.” “I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our two per cent target,” he said in a speech prepared for delivery to a monetary policy conference at Goethe University.

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How much higher will the US dollar go?The US Federal Reserve’s monetary policy tightening cycle is likely to be short and sharp, with two 50-basis-point hikes taking place in June and July. This will take the federal funds rate (FFR) towards 1.75% by end-July, with further hikes remaining on balance as the US Fed takes a pause-and-wait approach.This approach by the Fed would be similar to the June 1999-May 2000 period of a tightening cycle, suggesting that the FFR could eventually settle around 1.75% to 2%

Cagamas concludes issuance of one-year floating bonds, sukuk worth RM1.025bKUALA LUMPUR (May 30): National mortgage corporation Cagamas Bhd has concluded the issuance of its one-year floating bonds and sukuk worth RM1.025 billion amid rising interest rates and inflation concerns.Cagamas said in a statement on Monday (May 30) that the issuance comprises the one-year floating profit rate Islamic medium-term notes (IMTNs) worth RM345 million and the one-year floating rate conventional medium-term notes (CMTNs) valued at RM680 million, bringing the company’s aggregate issuances for the year to RM7.19 billion.'The proceeds from

Stocks rise, US dollar struggles on Fed betsSYDNEY/MILAN (May 30): World shares rose on Monday and the US dollar was pinned near five-week lows on hopes of an eventual slowdown in US monetary tightening following sharp interest rate hike s in June and July.Helping to mellow the mood was news that Shanghai authorities would cancel many restrictions on businesses resuming work from Wednesday, easing a city-wide lockdown that began two months ago.The MSCI's benchmark for global stocks rose 0.6% to its highest in more than four weeks

Thailand, Vietnam rice price hike plan 'impossible' — industry officialBANGKOK (May 30): A pact between Thailand and Vietnam to raise rice prices would be 'impossible', a top Thai industry official said on Monday, in another sign of opposition to a government-proposed plan for a rice cartel amid a global food crisis.Thailand's government said on Friday it planned with Vietnam to create a pact between the world's second- and third-largest rice exporters to boost their bargaining power and help mitigate rising production costs.Vietnam has yet to confirm such a

School bus fare hike will not be burdensome to parents, says FSBAM presidentKUALA LUMPUR, May 29 — School bus associations have given an assurance that they will not burden parents by an impending fare hike, said Federation of School Bus Associations... Good smoke you’re having

Charities also hit hard by price hikesJOHOR BARU: The increase in the price of essentials and other goods has not only affected the lives of the public but also non-governmental organisations (NGOs) that provide aid to those in need.

for the latest news you need to know.A The US Federal Reserve’s monetary policy tightening cycle is likely to be short and sharp, with two 50-basis-point hikes taking place in June and July.A KUALA LUMPUR (May 30): National mortgage corporation Cagamas Bhd has concluded the issuance of its one-year floating bonds and sukuk worth RM1.A SYDNEY/MILAN (May 30): World shares rose on Monday and the US dollar was pinned near five-week lows on hopes of an eventual slowdown in US monetary tightening following sharp interest rate hikes in June and July.

Monday, 30 May 2022 11:39 PM MYT FRANKFURT, May 30 — The US central bank needs to keep raising interest rates in big steps until inflation starts to come down, Federal Reserve Governor Christopher Waller said today. The Fed early this month announced the biggest increase in the benchmark interest rate since 2000, following a smaller hike in March, as it aims to tamp down the highest inflation in more than 40 years.75% by end-July, with further hikes remaining on balance as the US Fed takes a pause-and-wait approach. Waller said he supports more half-point rate hikes “for several meetings.19 billion.” “I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our two per cent target,” he said in a speech prepared for delivery to a monetary policy conference at Goethe University.75% to 2% and fall short of the terminal rate that the market is currently pricing in excess of 2. Markets are expecting a total of 2.4% so far this month.

5 percentage points of tightening this year, including the 0. We believe that if the Fed intends to avoid a hard landing or a possible recession, a pause-and-re-evaluation scenario by the Fed will play out after the Federal Open Market Committee meeting in July. Cagamas president and chief executive officer Datuk Chung Chee Leong said the IMTNs and CMTNs represent the first issuance concluded by Cagamas after the overnight policy rate hike of a quarter basis point by Bank Negara Malaysia on May 11.75 point of increases already implemented after the Fed’s policy-setting Federal Open Market Committee (FOMC) shifted to a more aggressive stance as price increases accelerated. But “if we need to do more, we will,” Waller said. For the US dollar (USD), a pattern of monetary policy tightening that is short and sharp, as in June 1999-May 2000, would suggest the USD is near its peak. Food and energy prices have surged in the wake of the Russian invasion of Ukraine, adding to the inflation pressures. "The deals were successfully priced with the three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) reference at equivalent to 2. The Fed’s preferred inflation measure in April showed the pace of increases slowing, but Waller said the rate has remained above four per cent for about a year and “is not coming down enough to meet the Fed’s target anytime soon. Thus, the current market pricing would need to be calibrated eventually to unwind the excessive tightening that is being priced via the USD. Although Wall Street will be shut for the Memorial Day, US futures were trading.

” If the momentum is allowed to get out of control it will be even harder and more painful to contain, he warned. “I cannot emphasise enough that my FOMC colleagues and I are united in our commitment to do what it takes to bring inflation down and achieve the Fed’s two per cent target. Based on the current correlation, we note the US Dollar Index (DYX) and the US 10-year Treasury yield have continued to edge higher, moving in lockstep as financial conditions via the foreign exchange (FX) and the rates market tighten. Subscribe to Mid-day email alert We deliver news to your inbox daily.” — AFP Advertisement .