Fed’s Daly says central bank was right to hold rates steady at July policy meeting
Federal Reserve Bank of San Francisco President Mary Daly said she was “completely supportive” of the decision last week to hold interest rates steady as the central bank gathers more data about how it should respond to inflation that is well above its 2% target. (Reuters)
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Clear communication of Fed’s ‘reaction function’ is helpful, Kashkari says
Clearly communicating what the Federal Reserve’s “reaction function” will be to various scenarios is helpful for the public and markets and should be continued, Minneapolis Fed President Neel Kashkari said in a jab at the communications stance adopted by new US central bank chief Kevin Warsh. (Reuters)
Fed’s Paulson keeps ‘open mind’ on rate policy outlook amid high inflation
Federal Reserve Bank of Philadelphia President Anna Paulson said Tuesday she was keeping an “open mind” about what lies ahead for monetary policy in an outlook that could call for higher rates. (Reuters)
Fed’s Williams expects inflation to ease, says Fed will act if it doesn’t
Federal Reserve Bank of New York President John Williams said he remained optimistic that inflation pressures are on track to ease gradually, but if they don’t the US central bank will not hesitate to respond with rate hikes to ensure price pressures return to target. (Reuters)
Private sector wage gains lift US labor costs in Q2, underlying trend benign
US labor costs increased slightly more than expected in the second quarter as private-sector wage growth picked up, though the underlying trend remained benign and suggested the jobs market was not driving inflation. (Reuters)
US business activity improved in July, but momentum may be temporary
US services sector activity accelerated in July, supported by spending related to the FIFA World Cup and Independence Day celebrations. However, S&P Global cautioned that the improvement may not last, as manufacturing growth slowed amid uncertainty linked to the US-Iran conflict. (The Edge Malaysia)
US mortgage rates climb again in latest week, many at year high
US mortgage interest rates climbed to their highest in about a year last week on an array of home loan products after a resumption of US-Iran fighting drove up both oil prices and the inflation-sensitive Treasury yields that underpin residential borrowing costs. (Reuters)
Brazil mid-July inflation slows more than expected, annual rate nears target band
Brazil’s IPCA-15 consumer price index rose far less than expected in the month to mid-July, official data showed on Tuesday, with the 12-month inflation rate moving closer to central bank’s target range ahead of its next interest rate decision. (Reuters)