This week’s Fed meeting—and Powell’s press conference on Wednesday—is a higher stakes event than seemed likely a few weeks ago after markets reacted to potentially hawkish shifts by central banks in Canada, the U.K., and Australia wsj.com/articles/centr…
The Reserve Bank of Australia stunned investors when it declined last week to defend the 0.1% target on bond yields that mature in Apr ‘24, fueling expectations that it will scrap yield curve control at Tuesday’s meeting. “If so, this is a startling about-face,” said one analyst
The Bank of Canada surprised markets last week when it ended its government-bond-purchase program and moved up the time frame for when it might first raise its benchmark interest rate from its current near-zero level.
Speculation that the Bank of England could be the first DM central bank to nudge up interest rates intensified after Gov. Andrew Bailey warned on Oct. 17 that the central bank “will have to act” if surging prices for goods and energy push up Inflation expectations.
European Central Bank President Christine Lagarde last week pushed back against market expectations that the ECB will increase interest rates next year, but investors thought her message was too weak and added to their bets that the ECB would soon increase rates.
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