Mary Daly becomes latest Fed official to raise prospect of 0.25 point rate rise San Francisco president of US central bank said &lsquo case can be made&rsquo for half- or quarter-point increase

 

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/2194fa38-0326-4aff-9573-63af24dc58c1

Mary Daly became the latest Federal Reserve official to raise the prospect of the US central bank slowing the pace of its interest rate increases to a quarter-point rise next month, even as policymakers backed the benchmark rate surpassing 5 per cent. Daly, president of the San Francisco Fed, on Monday said that while it is &ldquo really too soon to declare victory&rdquo on inflation, the central bank is considering raising the federal funds rate 0.25 percentage points when officials next gather later this month. That would mark a step down from the half-point increase the Fed implemented in December and a reversion to a more typical pace of monetary tightening for the central bank. The Fed delivered a historic string of 0.75 percentage point rate rises as it raced to tame price pressures after underestimating the inflation problem last year. When asked in an interview with the Wall Street Journal on Monday whether she supported a quarter-point or half-point rate rise for the next rate decision, Daly said the &ldquo case can be made for either one&rdquo . &ldquo It really is about incoming information,&rdquo she said, adding the Fed is &ldquo completely data-dependent&rdquo as it assesses how much further to tighten monetary policy. Daly said she still thinks the fed funds rate will need to surpass 5 per cent in order to get inflation down but how far above that level is &ldquo not completely clear&rdquo . Daly&rsquo s comments echo those of other regional presidents, including James Bullard of the St Louis Fed and Atlanta&rsquo s Raphael Bostic. Both have said the Fed still has more work to do to damp demand and that the data would determine whether the central bank could move at a more measured pace as it approaches its so-called terminal rate. Thomas Barkin, president of the Richmond Fed, said last week that it &ldquo makes sense to steer more deliberately as we work to bring inflation down&rdquo , suggesting support for a smaller rate rise. According to individual projections published in December, most officials back fed funds peaking at between 5 per cent and 5.25 per cent. It currently hovers between 4.25 per cent and 4.50 per cent. Minutes from the final gathering of 2022, released last week, also showed that no policymaker backed rate cuts until 2024, a message officials recently reiterated. Recommended US inflation US inflation has not &lsquo turned the corner yet&rsquo , top IMF official warns Traders in federal funds futures markets expect the Fed to opt for a quarter-point rate rise in February and stop short of raising the policy rate above 5 per cent. They also bet the Fed will reverse course and cut rates by the end of year. Speculation about a less aggressive Fed has become more pronounced as the economic data have improved, showing less intense inflationary pressures and a slowing labour market. December&rsquo s consumer price index report will be released on Thursday. Daly said she is paying closest attention to services inflation, which she said is the best proxy for underlying price pressures, once food, energy and housing costs are stripped out. Those costs, which are directly tied to the labour market, have shown &ldquo no sense&rdquo of slowing, she said.

https://economictimes.indiatimes.com/tech/newsletters/tech-top-5/tcs-net-profit-up-4-from-q2-misses-estimates-indias-iphone-exports-double-to-over-2-5b/articleshow/96858702.cms

it needs to takeover of factory

https://www.businesstoday.in/technology/news/story/tata-group-in-talks-with-wistron-to-buy-apple-iphone-factory-in-karnataka-for-rs-5000-crore-354676-2022-11-30

https://www.taipeitimes.com/News/editorials/archives/2022/09/28/2003786037

 

https://www.globaltimes.cn/page/202212/1281416.shtml

 

https://www.china-briefing.com/news/the-us-china-trade-war-a-timeline/

https://www.reuters.com/business/finance/update-foreign-holdings-treasuries-drop-lowest-since-may-2021-data-2022-11-16/

 

https://www.globaltimes.cn/page/202212/1282025.shtml

today

 

 

 

 

 

 

 

 

 

https://money.usnews.com/investing/news/articles/2023-01-08/fed-faces-difficult-call-to-avoid-overdoing-rates-shock-romer-says

 

https://www.reuters.com/markets/rates-bonds/fed-faces-difficult-call-avoid-overdoing-rates-shock-romer-says-2023-01-08/

https://www.livemint.com/market/stock-market-news/us-fed-s-hawkish-outlook-on-rates-spooks-markets-11671126942635.html

us rate hike and its effect on sg saving bonds

https://blog.seedly.sg/guide-investing-singapore-savings-bond-ssb-interest-rate-how-to-buy/

https://www.bbc.com/news/business-63488472

 

https://finance.yahoo.com/news/why-debt-ceiling-debate-puts-122308450.html

 

prepare for oct 2023 big us stock selldown

https://slate.com/business/2023/01/house-republicans-congress-debt-ceiling-crisis-unlikely.html

 

https://www.alliancebernstein.com/library/the-feds-policy-tightening-cycle-enter-phase-two.htm

https://www.stlouisfed.org/on-the-economy/2020/august/what-yield-curve-control

 

https://www.usdebtclock.org/index.html?taxpayer

 

https://edition.cnn.com/2023/01/04/economy/house-speaker-economy-debt-ceiling/index.html

https://www.ft.com/content/ed6d5723-c2d4-4337-9453-42fea9d91261

 

US needs more job cuts to slow its overheated economy and its big debts

https://www.ft.com/content/aca45a96-8923-445b-b91a-0b81e093b1cd

https://www.taiwannews.com.tw/en/news/4491864

 

https://siepr.stanford.edu/news/china-plans-have-its-currency-rival-dollar-new-study-assesses-its-prospects

 

usd sgd 1.34