The Fed lowers its benchmark rate but stop there

The Fed lowers its benchmark rate to 1.5-1.75%. It says it wants to take a break. It downplayed expectations of another cut this year. The three drops this year are consistent with the September dots’ graph. Now the real rate of the fed is negative while the unemployment rate is at 3.5%. Always a very strange configuration.

We are waiting for the press conference to find out what Powell will say about the money market, which is not stabilizing. There is a real concern.

On this latter point, the message from Powell was clear. Stay away, it is not your business. It’s a bit scary, isn’t it?

Inflation risk wins over investors

Twenty days after the invasion of Ukraine by Russia, the risk of inflation takes precedence over the risk of slowing activity in the perception of investors.At her press conference, Christine…

Should the ECB become aggressive?

The ECB, after Christine Lagarde’s remarks at the February 3 press conference, is following in the footsteps of the Fed. Like the US central bank, the ECB has changed its…

2 remarks on Monetary Policy

The Bank of England raised its benchmark interest rate by 25 basis points to 0.5%. The trend is still bullish for the next meeting since 4 members of the monetary…