US Federal Reserve Prepared for “Mini-Easing” Cycle | Bank of England Stays on Hold at 0.75%
Published August 1, 2019
US Federal Reserve Chairman Powell has once again left markets confused, despite the quarter point cut being far from surprising. Powell discouraged market participants from counting on a longer-term easing cycle, saying the modest cut was meant to protect the economy’s expansion. The greenback rose to a two-year high against the euro and hit a two-month high against the yen.
Chinese and US negotiators are set to meet again in early September, this time in the United States. The consultations that ended earlier this week in Shanghai may not have produced major developments, but Chinese state media called it a “pragmatic” step forward. The White House followed suit by stating that the meetings were “constructive.”
The Bank of England’s Monetary Policy Committee concluded their meetings earlier this morning. They determined that their monetary policy will aim to meet the 2% inflation target in a way that helps to sustain growth and employment. The MPC voted unanimously to maintain the bank rate at 0.75%.
In US unemployment claims data this morning, the advanced figures for seasonally adjusted initial claims was 215,000. This marks an increase of 8,000 from the previous week’s revised level (up by 1,000, from 206,000 to 207,000)).