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Abstract:I do think as a base case of thinking, 50 basis point increases makes sense exactly as Chair Powell laid out.
The Federal Reserve's signal that it will likely raise interest rates by 50 bps at each of its next two meetings in June and July is sensible, New York Fed President John Williams said on Tuesday.
“I do think as a base case of thinking, 50 basis point increases makes sense exactly as Chair Powell laid out,” Williams told reporters following a speech to an economics conference organized by Germany's central bank in Eltville am Rhein, Germany.
“We are removing accommodation pretty quickly...and that gives us a little space to move in something like the 50 basis point increment at the next couple of meetings.”
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The U.S. Bureau of Labor Statistics revised down the employment growth in the year ending in March by 818,000, an average monthly decrease of about 68,000, the largest downward revision since 2009. The substantial downward revision of employment data re-emphasized the severity and necessity of the U.S. employment problem, paving the way for a rate hike in September. Bearish for the U.S. dollar.
Fed Governor Bowman: There are upside risks to inflation, the labor market continues to strengthen, and a cautious attitude will be maintained at the September meeting. Boston Fed President Collins: If the data is as expected, it would be appropriate to start easing policy "soon". Inflationary pressure will slow down the pace of U.S. interest rate cuts, which will be bullish for the dollar.
The week ahead: Traders on the backfoot ahead of a quiet week
This week, the Italy financial regulator CONSOB issued a warning against an unlicensed broker named Broker Capitals. When we clicked on Broker Capitals' website, its logo, trade name, and design seemed familiar to us.