In its current reading, the RSM US Financial Conditions Index indicates a level of accommodation that is more than 1.4 standard deviations above normal. … READ MORE >
monetary policy
Looking ahead to 2022 and what to expect in the economy
As the economy approaches a full reopening, we expect that growth in 2022 will exceed 4%, the unemployment rate will fall to 3.5% and job growth will average roughly 230,000 per month. … READ MORE >
Fed slows asset purchases as it moves to end pandemic-era accommodation
The Federal Reserve announced on Wednesday that it later this month would start paring back its pandemic-era monetary accommodation even as it held its policy rate between zero and 25 basis points. … READ MORE >
RSM Canada Financial Conditions Index: An inflation tantrum?
Financial markets around the world are reacting to the rising risk of inflation and the prospect of policy responses by central banks, all of which have led to a modest easing in our RSM Canada Financial Conditions Index. … READ MORE >
FOMC preview: Tapering explained
Next week’s meeting of the Federal Open Market Committee will focus on the Federal Reserve’s exit from its pandemic-era asset purchase program that has sent its balance sheet above $8.5 trillion. … READ MORE >
Bank of Canada talks like a hawk and walks like a dove as it keeps rates steady
The emerging trend of central banks talking like hawks and walking like doves amid supply chain disruptions and persistent inflation continued as the Bank of Canada kept its policy rate at 0.25% on Wednesday. … READ MORE >
FOMC meeting: Prelude to tapering amid global financial turbulence
This week’s FOMC meeting is not likely to include any meaningful announcement on tapering its monthly asset purchases and only a modest change in the Fed’s Summary of Economic Projections and dot plot interest rate forecast. … READ MORE >
Fed Jackson Hole conference: Powell reaffirms market expectations
Federal Reserve Chairman Jerome Powell’s widely anticipated comments on the economic outlook did not disappoint on Friday. He reaffirmed market expectations of a slowing in the pace of monetary accommodation before the end of the year while retaining flexibility around the rising economic risks linked to the delta variant. … READ MORE >
Federal Reserve policy and interest rates in 10 charts
Why the FOMC decided to maintain is accommodative monetary policies, as told in 10 charts. … READ MORE >
FOMC preview: Expect more talk, less action at the July meeting
Inflationary risk and the delta variant of the coronavirus will be front and center at next week’s meeting of the Federal Open Market Committee, while policy changes will take a back seat. … READ MORE >