We expect the Federal Open Market Committee to keep its policy rate unchanged between a rate of 5.25% and 5.5% at its meeting next week. … READ MORE >
Global central bank policy pivot continues as ECB cuts rate
The rate cuts in Europe and Canada are likely to be followed by the Bank of England in August and the Fed this fall. … READ MORE >
RSM US Manufacturing Outlook Index: Decline continues in May
Surveys of manufacturing firms conducted by five regional Federal Reserve banks continue to show the negative impact of a tight monetary policy and the lagged effect of an aggressive fiscal policy. … READ MORE >
Global central bank outlook: Reducing rates to bolster growth
With disinflation having taken hold around the world, it is time for central banks to reduce their restrictive policy rates to promote demand and growth. … READ MORE >
Assessing central bank policy in the post-pandemic economy
Stagnant global growth amid a structural economic shift demand a policy response by central banks still attempting to restore price stability. … READ MORE >
Interest rate volatility: Why Fed policy guidance is less effective
The past year has had significant volatility in financial markets, with dramatic shifts in the 10-year yield and multiple resets in market expectations for interest rate paths. … READ MORE >
Intervening in foreign exchange markets: The poverty of dollar devaluation
We think intervening to devalue the dollar would be folly. In the end, the result would be upward pressure on prices, reduced demand and, ultimately, a slowing economy. … READ MORE >
U.S. monthly employment report: Hiring cools in April
Hiring cooled in April from the torrid pace of 269,000 jobs on average during the first three months of 2024 as the economy generated an average increase of 175,000 in total employment. … READ MORE >
GDP growth slows to 1.6% in first quarter, exaggerated by volatile trade and inventory data
Overall growth in U.S. gross domestic product fell to 1.6% in the first quarter, but the slowdown was exaggerated by volatile trade and inventory data, which provided a 1.2% drag on overall activity. … READ MORE >
Regime change: Businesses face higher costs in nominal and real terms
Whether it is high single-digit borrowing costs for large multinationals or double-digit financing costs for middle market firms, elevated interest rates have become a fact of life for firm managers. … READ MORE >