Federal Reserve on hold
The US Fed kept interest rates at 5.25% and stated that it expected the economy to expand at a moderate pace and that inflation risks still remain with relevant tightening to occur as needed depending on inflation and growth. It acknowledged firmer economic growth and signs that the housing sector was stabilising. It also highlighted the fact that core inflation numbers have improved.
UK consumer confidence stayed in negative territory but improved slightly. The largest drop was in people’s perceptions of the economic situation past and present.
Bank of England MPC member Besley who voted to raise rates in January said in an interview in the FT today that he was concerned that inflation may not fall as fast as expected and he felt there was the need to get ahead of the curve in January in raising rates given the economic data since the end of November.
US Q4 GDP came in stronger than expected at 3.5%. US ADP private payrolls rose in January which is a positive pointer toward the Non-Farm payrolls number due Friday. US January Chicago Purchasing Managers Index came in weaker than expected, with new orders and employment softer.
US Treasury Secretary Paulson was speaking at the Senate Banking Committee and again said that they are actively pressing the Chinese to introduce greater currency flexibility and undertake wider market reforms.
He also put some pressure on the Yen by saying that he was watching its value ‘very very’ closely although he acknowledged Japan emerging from deflation and the fundamental situation. The market is wary of a possible statement on the Yen emerging from the G7 meeting next weekend.
Eurozone unemployment dipped to 7.5% in December from 7.6% in November and came in better than estimated with German and French unemployment numbers leading the charge. CPI in this area came in softer than expected.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
UK consumer confidence stayed in negative territory but improved slightly. The largest drop was in people’s perceptions of the economic situation past and present.
Bank of England MPC member Besley who voted to raise rates in January said in an interview in the FT today that he was concerned that inflation may not fall as fast as expected and he felt there was the need to get ahead of the curve in January in raising rates given the economic data since the end of November.
US Q4 GDP came in stronger than expected at 3.5%. US ADP private payrolls rose in January which is a positive pointer toward the Non-Farm payrolls number due Friday. US January Chicago Purchasing Managers Index came in weaker than expected, with new orders and employment softer.
US Treasury Secretary Paulson was speaking at the Senate Banking Committee and again said that they are actively pressing the Chinese to introduce greater currency flexibility and undertake wider market reforms.
He also put some pressure on the Yen by saying that he was watching its value ‘very very’ closely although he acknowledged Japan emerging from deflation and the fundamental situation. The market is wary of a possible statement on the Yen emerging from the G7 meeting next weekend.
Eurozone unemployment dipped to 7.5% in December from 7.6% in November and came in better than estimated with German and French unemployment numbers leading the charge. CPI in this area came in softer than expected.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Drs Search @ 2:46 PM
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